Charity registration number 1106273
Company registration number 05124435 (England and Wales)
KINGSGATE COMMUNITY CHURCH
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
KINGSGATE COMMUNITY CHURCH
LEGAL AND ADMINISTRATIVE INFORMATION
Directors and Trustees
Dr David Smith (Chairman)
Mr Norman Paskin
Mr Barry Featherstone
Mr Matthew Negus
Mr Samson Abioye
Ms Lydia Opayinka
(Appointed 6 January 2023)
Secretary
Mrs Sally Duffy
Multisite Strategy Team
Dr David Smith
Mrs Karen Smith
Mr Simon Deeks
Mrs Sally Duffy
Mr Jim Thody
Mrs Jasmine Allen
Mr Phil Timson
Mrs Zia Deeks
Mrs Sharon Keogh
Mr Simon Benn
Charity number
1106273
Company number
05124435
Principal office
2 Staplee Way
Parnwell
Peterborough
United Kingdom
PE1 4YT
Auditor
Azets Audit Services
Westpoint
Lychwood
Peterborough
Cambridgeshire
PE2 6FZ
United Kingdom
Bankers
Allied Irish Bank
61/62 The Mall
London
United Kingdom
W5 3TA
KINGSGATE COMMUNITY CHURCH
LEGAL AND ADMINISTRATIVE INFORMATION
Solicitors
Hegarty LLP
48 Broadway
Peterborough
United Kingdom
PE1 1YW
The directors of the charitable company (the charity) are its trustees for the purpose of charity law and throughout this report are collectively referred to as its trustees.
KINGSGATE COMMUNITY CHURCH
CONTENTS
Page
Trustees' report
1 - 6
Statement of trustees' responsibilities
7
Independent auditor's report
8 - 10
Statement of financial activities
11 - 12
Balance sheets
7
Statement of cash flows
14
Notes to the financial statements
15 - 37
KINGSGATE COMMUNITY CHURCH
TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -

The trustees present their annual report and financial statements for the year ended 31 December 2023.

The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity's Memorandum and Articles of Association, the Companies Act 2006 and “Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)” (as amended for accounting periods commencing from 1 January 2019)

Objectives and activities

The Objectives of The Charity

 

The charity’s purposes, as set out in the objects contained in the company’s memorandum of association, are:

 

  1. The advancement of the Christian faith in accordance with the doctrine set out in the underwritten Fourth Schedule and the worship of God in the said county and elsewhere by any means whatsoever including (but not by way of limitation) the preaching and proclamation of the Christian gospel, the teaching of the Christian Doctrine and principles, the pastoral care of Christian people and the printing and distribution of the Bible and Christian literature including video, and audio recordings and by any other media which is, or may become, available.

  2. The relief of persons who are in conditions of need, hardship, or distress or who are aged or sick.

  3. The advancement of education on the basis of Christian principles and, without prejudice, to the generality of the foregoing, the provision of such education in any educational establishment and, if the Trustees so decide, the provision of one or more charitable educational establishments for the general education of children and adults on the basis of such Christian principles.

2023 Vision, Values and Strategic Priorities

 

In 2023, the Strategic Leadership Team of KingsGate Community Church reaffirmed the vision, values, and strategic priorities of the Church as:

 

Vision: ‘Transforming Lives from our Neighbourhoods to the Nations by the Power of God’s Love’.

Values: Word, Spirit, Worship, Prayer, Fellowship, Discipleship, Mission, and Stewardship.

Strategic Priorities:

In 2023 we continued to focus on our core mission, which as a church is “TRANSFORMING LIVES from our neighbourhoods to the nations, by the power of God’s love” with an emphasis on being RADICAL DISCIPLES who:

  1. Keep on ENCOUNTERING Jesus (Knowing God)

  2. Keep on FOLLOWING Jesus (Living in Freedom)

  3. Keep on GROWING together in Jesus (Growing in Community)

  4. Keep on MISSION with Jesus (Making a difference)

 

2023 Activities:

 

The main activity continues to be teaching via Sunday services and Life Groups both in person and online.

 

Other activities in 2023 included:

 

KINGSGATE COMMUNITY CHURCH
TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -

 

KINGSGATE COMMUNITY CHURCH
TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -

 

2023 Radical Disciples Special Offering

 

In March 2023 we gave into ‘The Church We See’ Special offering. 85% of the offering raised allowed us to make a one-off payment on the mortgage of £598,931.48. 5% of the offering went into our body needs fund – £34,878.68.

 

We additionally transferred 10% of this offering, into our Mission Fund. This helps to resource our Community Action projects, as well as resourcing our partnerships with overseas mission projects, as detailed above.

The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake.

KINGSGATE COMMUNITY CHURCH
TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 4 -
Financial review

Income

 

Total income, both restricted and unrestricted, of £4.79 million was received in 2023, an 18.3% increase from 2022 (£4.05 million in 2022). Trading income was £363,286 in 2023, a 48.9% from 2022 (£243,338 in 2022). Total income excluding trading income for 2023 was £4.43 million, a 16.3% increase on 2022 (£3.81 million in 2022).

 

The charity’s main income stream is from tithes and offerings given by church members and regular attendees. In 2023, unrestricted tithes and offerings were £2,845,602 which was a 9.4% increase compared to 2022 (£2,599,602 in 2022). This included £594,355 of unrestricted offerings received by the Cambridge campus, a 6.3% increase compared to 2022 (£558,940 in 2022). It also included £87,655 of unrestricted offerings from our Leicester campus, a 0.6% increase compared to 2022 (£87,126 in 2022).

 

Restricted offerings were £958,730, which was a 41.6% increase on 2022 (£677,152 in 2022).

 

Expenditure

 

Expenditure for the year totalled £3,674,300 (2022 – £3,508,624) excluding commercial operations in the trading subsidiary.

 

During 2023, salaries (excluding salaries within the commercial operations) accounted for 48.3% of 2023 expenditure, £1.77 million, compared to 47.8% of 2022 expenditure (£1.68 million). The charity employs both ministry-based positions, such as pastors, children and youth workers and community action workers, as well as administration and management staff, all of which work under the overall direction of the Strategic Leadership Team.

Reserves Policy

It is the policy of the charity to work towards and then maintain unrestricted funds, which are the free reserves of the charity, at a level which equates to approximately three months unrestricted expenditure excluding certain discretionary spend. This would provide sufficient funds to cover salaries and building running costs for three months. Unrestricted funds of the charity were £1.08m on 31st December 2023 (excluding interest in land & property). The current reserves level is £600k more than the minimum reserves required.

 

The need for the charity to hold significant reserves is generated by the employment of 57 full and part time permanent employees along with building running costs of the KingsGate Peterborough building.

 

It is the charity’s policy to monitor growth and income statistics carefully and if income were to continue to fall significantly, take immediate measures to minimise risk.

Risk Management

 

The trustees have assessed the major risks the charity is exposed to and are satisfied that systems are in place to mitigate exposure to the major risks.

Future Plans

 

In 2024 we will be continuing to focus on our core mission, which as a church is “TRANSFORMING LIVES from our neighbourhoods to the nations, by the power of God’s love” with an emphasis on going BIGGER AND BEYOND with a particular focus on:

KINGSGATE COMMUNITY CHURCH
TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 5 -
Structure, governance and management

Governing Document

 

KingsGate Community Church is a company limited by Guarantee with no share capital. It was incorporated as Peterborough Community Church on the 11th May 2004 and was registered with the Charity Commission on the same day. It changed its name to KingsGate Community Church from 1st February 2008.

 

None of the trustees have any beneficial interest in the company. All the trustees are members of the company and guarantee to contribute such amount as may be required (not exceeding £10) to the company’s assets in the event of a winding up.

 

KingsGate Community Church business is concluded under the framework of its governing memorandum and articles of association, prepared under the Companies Act 1985.

The trustees, who are also the directors for the purpose of company law, and who served during the year and up to the date of signature of the financial statements were:

 

Dr David Smith (Chairman)
Mr Norman Paskin
Mr Barry Featherstone
Mr Matthew Negus
Mr Samson Abioye
Ms Lydia Opayinka
(Appointed 6 January 2023)

Appointment of Trustee Directors

 

The trustees, who have served during the year and since the year end, are set out on page 2. Trustees are appointed by the board and each year, one third retire by rotation and either new trustees are identified, or previous serving trustees are reappointed.

 

Trustee Induction and Training

 

All trustees are offered external training which will help them to undertake their roles and responsibilities.

 

None of the trustees has any beneficial interest in the company. All of the trustees are members of the company and guarantee to contribute £1 in the event of a winding up.

Organisation

 

The board of trustees meet at least four times a year. Trustees ensure that the charity remains solvent, is well-run, and delivering the charitable outcomes for the benefit of the public for which it has been set up. The Strategic Leadership Team, which is made up of the Senior Leadership Team and the Multisite Strategy Team, are responsible for the day-to-day running of the organisation. Key strategies identified by the Senior Leadership Team and the Multisite Strategy Team are ratified by Trustees before implementation.

Related Parties

 

KingsGate Trading Ltd, a wholly owned subsidiary, was established on 26th January 2007. This subsidiary was incorporated to manage the business activities of the charity including the provision of conference facilities, sale of books and resources. KingsGate Community Church granted a ‘licence to use’ the building to KingsGate Trading Ltd who started to hire out the building from 1st June 2008.

 

KingsGate Trading Ltd will be making a distribution to the parent company under gift aid of £50,889 (£9,374 was given in 2023 with a further £41,515 in 2024) and also paid a management charge of £36,168 for the trading period (2022 – £3,144 distribution under gift aid, £23,664 management charge). KingsGate Trading Ltd recorded a profit for the year of £84,680 before distribution to the parent company under gift aid (2022 a profit of £42,661).

KINGSGATE COMMUNITY CHURCH
TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 6 -
Auditor

In accordance with the company's articles, a resolution proposing that Azets Audit Services be reappointed as auditor of the company will be put at a General Meeting.

Disclosure of information to auditor

Each of the trustees has confirmed that there is no information of which they are aware which is relevant to the audit, but of which the auditor is unaware. They have further confirmed that they have taken appropriate steps to identify such relevant information and to establish that the auditor is aware of such information.

The trustees' report was approved by the Board of Trustees.

Mr Barry Featherstone
Trustee
Dated: 23 June 2024
KINGSGATE COMMUNITY CHURCH
STATEMENT OF TRUSTEES' RESPONSIBILITIES  
FOR THE YEAR ENDED 31 DECEMBER 2023
- 7 -

The trustees, who are also the directors of Kingsgate Community Church for the purpose of company law, 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).

 

Company Law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that year.

 

In preparing these financial statements, the trustees are required to:

 

- select suitable accounting policies and then apply them consistently;

 

- observe the methods and principles in the Charities SORP;

 

- make judgements and estimates that are reasonable and prudent;

 

- state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

 

- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation.

 

The trustees are responsible for keeping adequate 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 Companies Act 2006. 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.

KINGSGATE COMMUNITY CHURCH
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF KINGSGATE COMMUNITY CHURCH
- 8 -

Opinion

We have audited the accounts of Kingsgate Community Church (the ‘charity’) and it's subsidiary for the year ended 31 December 2023 which comprise the Group Statement of Financial Activities, the Group and Parent Charitable Company Balance Sheets, the Group and Parent Charitable Company Cash Flow Statements and the notes to the accounts, 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 Group and Parent charitable company's affairs as at 31 December 2023 and of its incoming resources and application of resources, for the year then ended;

-
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-

have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's 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 UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

 

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

 

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The trustees are responsible for the other information contained within the annual report. 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. 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 course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

-

the information given in the trustees' report for the financial year for which the financial statements are prepared, which includes the directors' report prepared for the purposes of company law, is consistent with the financial statements; and

-

the directors' report included within the trustees' report has been prepared in accordance with applicable legal requirements.

KINGSGATE COMMUNITY CHURCH
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF KINGSGATE COMMUNITY CHURCH
- 9 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the Group and Parent charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Directors’ Report included within the Trustees' Report.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

-

adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

-

the financial statements are not in agreement with the accounting records and returns; or

-
certain disclosures of trustees' remuneration specified by law are not made; or
-

we have not received all the information and explanations we require for our audit; or

-

the trustees were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemptions in preparing the trustees' report and from the requirement to prepare a strategic report.

Responsibilities of trustees

As explained more fully in the statement of trustees' responsibilities, the trustees, who are also the directors of the charity for the purpose of company law, are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the trustees are responsible for assessing the 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 charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor's 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 auditor's 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.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

KINGSGATE COMMUNITY CHURCH
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF KINGSGATE COMMUNITY CHURCH
- 10 -

Extent to which 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 and on the Financial Reporting Council’s website, to detect material misstatements in respect of irregularities, including fraud.

 

We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework.  Based on this understanding, we identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion.  This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud.

 

In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:

 

 

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation.  This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance.  The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

Use of our report

This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Tracey Richardson BSc (Hons) FCA (Senior Statutory Auditor)
for and on behalf of Azets Audit Services
28 June 2024
Chartered Accountants
Statutory Auditor
Westpoint
Lynch Wood
Peterborough
Cambridgeshire
United Kingdom
PE2 6FZ
KINGSGATE COMMUNITY CHURCH
STATEMENT OF FINANCIAL ACTIVITIES
INCLUDING INCOME AND EXPENDITURE ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 11 -
Current financial year
Unrestricted
Unrestricted
Restricted
Total
Total
funds
funds
funds
general

designated

2023
2023
2023
2023
2022
Notes
£
£
£
£
£
Income and endowments from:
Donations and legacies
3
2,676,093
-
1,328,059
4,004,152
3,277,002
Charitable activities
4
109,500
-
315,907
425,407
524,648
Other trading activities
5
362,286
-
-
362,286
243,338
Other income
6
1,298
-
-
1,298
7,206
Total income
3,149,177
-
1,643,966
4,793,143
4,052,194
Expenditure on:
Raising funds
7
278,417
-
-
278,417
201,671
Charitable activities
8
2,408,464
246,712
1,019,124
3,674,300
3,508,624
Total expenditure
2,686,881
246,712
1,019,124
3,952,717
3,710,295
Net incoming resources before transfers
462,296
(246,712)
624,842
840,426
341,899
Gross transfers between funds
(345,348)
1,019,679
(674,331)
-
-
Net income/(expenditure) for the year/
Net movement in funds
116,948
772,967
(49,489)
840,426
341,899
Fund balances at 1 January 2023
965,786
7,259,794
1,270,710
9,496,290
9,154,391
Fund balances at 31 December 2023
1,082,734
8,032,761
1,221,221
10,336,716
9,496,290

The statement of financial activities includes all gains and losses recognised in the year.

All income and expenditure derive from continuing activities.

The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.
KINGSGATE COMMUNITY CHURCH
STATEMENT OF FINANCIAL ACTIVITIES (CONTINUED)
INCLUDING INCOME AND EXPENDITURE ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 12 -
Prior financial year
Unrestricted
Unrestricted
Restricted
Total
funds
funds
funds
general

designated

2022
2022
2022
2022
Notes
£
£
£
£
Income and endowments from:
Donations and legacies
3
2,599,849
-
677,153
3,277,002
Charitable activities
4
106,796
-
417,852
524,648
Other trading activities
5
243,338
-
-
243,338
Other income
6
7,206
-
-
7,206
Total income
2,957,189
-
1,095,005
4,052,194
Expenditure on:
Raising funds
7
201,671
-
-
201,671
Charitable activities
8
2,508,451
253,578
746,595
3,508,624
Total expenditure
2,710,122
253,578
746,595
3,710,295
Net incoming resources before transfers
247,067
(253,578)
348,410
341,899
Gross transfers between funds
(320,741)
612,152
(291,411)
-
Net income/(expenditure) for the year/
Net movement in funds
(73,674)
358,574
56,999
341,899
Fund balances at 1 January 2022
1,039,460
6,901,220
1,213,711
9,154,391
Fund balances at 31 December 2022
965,786
7,259,794
1,270,710
9,496,290
KINGSGATE COMMUNITY CHURCH
BALANCE SHEETS
AS AT
31 DECEMBER 2023
31 December 2023
- 13 -
Group
Charity
Group
Charity
2023
2023
2022
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
16
8,246,195
9,143,152
8,372,459
9,266,453
Investments
17
-
1
-
1
8,246,195
9,143,153
8,372,459
9,266,454
Current assets
Stocks
19
4,505
-
9,872
-
Debtors
20
168,916
115,561
158,986
148,945
Cash at bank and in hand
2,463,224
2,439,711
2,395,538
2,358,930
2,636,645
2,555,272
2,564,396
2,507,875
Creditors: amounts falling due within one year
21
(546,124)
(508,466)
(606,724)
(575,225)
Net current assets
2,090,521
2,046,806
1,957,672
1,932,650
Total assets less current liabilities
10,336,716
11,189,959
10,330,131
11,199,104
Creditors: amounts falling due after more than one year
22
-
-
(833,841)
(810,432)
Net assets
10,336,716
11,189,959
9,496,290
10,388,672
Income funds
Restricted funds
25
1,221,221
1,221,221
1,270,710
1,270,710
Unrestricted funds - general
Designated funds
26
8,032,761
8,929,718
7,259,794
8,153,788
General unrestricted funds
26
1,082,734
1,039,020
965,786
964,174
10,336,716
11,189,959
9,496,290
10,388,672
The financial statements were approved by the board of directors and authorised for issue on
23 June 2024
2024-06-23
and are signed on its behalf by:
Mr Barry Featherstone
Trustee
Company Registration No. 05124435
KINGSGATE COMMUNITY CHURCH
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 14 -
2023
2023
2022
2022
Group
Charity
Group
Charity
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
32
1,118,438
1,102,124
514,729
505,094
Investing activities
Purchase of tangible fixed assets
(123,411)
(123,411)
(106,047)
(106,047)
Proceeds on disposal of tangible fixed assets
1,298
1,298
7,374
7,374
Net cash used in investing activities
(122,113)
(122,113)
(98,673)
(98,673)
Financing activities
Repayment of bank loans
(928,639)
(899,230)
(505,830)
(505,239)
Net cash used in financing activities
(928,639)
(899,230)
(505,830)
(505,239)
Net increase/(decrease) in cash and cash equivalents
67,686
80,781
(89,774)
(98,818)
Cash and cash equivalents at beginning of year
2,395,538
2,358,930
2,485,312
2,457,748
Cash and cash equivalents at end of year
2,463,224
2,439,711
2,395,538
2,358,930
KINGSGATE COMMUNITY CHURCH
NOTES TO THE  FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 15 -
1
Accounting policies
Charity information

Kingsgate Community Church is a private company limited by guarantee incorporated in England and Wales. The registered office is 2 Staplee Way, Parnwell, Peterborough, PE1 4YT, United Kingdom.

1.1
Accounting convention

The accounts have been prepared in accordance with the charity's governing document, the Companies Act 2006 and “Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)” (as amended for accounting periods commencing from 1 January 2019). The charity is a Public Benefit Entity as defined by FRS 102.

The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £.

The accounts have been prepared under the historical cost convention, modified to include certain items at fair value. The principal accounting policies adopted are set out below.

1.2
Group financial statements
The financial statements consolidate the results of the charitable company and its subsidiary undertaking KingsGate Trading Limited on a line-by line basis. Intra-group sales and profits are eliminated fully on consolidation. A separate Statement of Financial Activities and Income and Expenditure Account for the charity has not been presented because the charity has taken advantage of the exemption afforded by section 408 of the Companies Act 2006.
1.3
Going concern

At the time of approving the financial statements, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.

1.4
Charitable funds

Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.

Designated funds - these are funds set aside by the trustees out of unrestricted general funds for specific future purposes or projects.

Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.

1.5
Income
Income is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.

Donated facilities and donated professional services are recognised in income at their fair value when their economic benefit is probable, it can be measured reliably and the charity has control over the item. Fair value is determined on the basis of the value of the gift to the charity. For example the amount the charity would be willing to pay in the open market for such facilities and services. A corresponding amount is recognised in expenditure.

No amount is included in the financial statements for volunteer time in line with the SORP (FRS 102). The charity benefits from many voluntary hours and unclaimed out-of-pocket expenses contributed by a number of supporters. The charity is extremely grateful for all these gifts in kind.

KINGSGATE COMMUNITY CHURCH
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 16 -

The charity receives grants in respect of its activities. Income from grants are recognised at fair value when the charity has entitlement after any performance conditions have been met, it is probable that the income will be received and the amount can be measured reliably. If entitlement is not met then these amounts are deferred.

Income from trading activities is received in exchange for supplying goods and services in order to raise funds and is recognised when entitlement has occurred.

Investment income is accounted for in the period in which the charity is entitled to receipt.

1.6
Expenditure

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement, and the amount of the obligation can be measured reliably.

 

Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges are allocated on the portion of the asset’s use.

All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. Expenditure is recognised where there is a legal or constructive obligation to make payments to third parties, it is probable that the settlement will be required and the amount of the obligation can be measured reliably. It is categorised under the following headings:

- Costs of raising funds;

- Expenditure on charitable activities; and

- Other expenditure which represents those items not falling into the categories above.

Irrecoverable VAT is charged as an expense against the activity for which expenditure arose.

Support costs are those that assist the work of the charity but do not directly represent charitable activities and include office costs, governance costs and other administrative costs. Where support costs cannot be directly attributed to particular headings they have been allocated to cost of raising funds and expenditure on charitable activities on a basis consistent with use of the resources.

1.7
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

 

All assets costing more than £250 are capitalised. No depreciation is provided on freehold land.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Freehold buildings
1% p.a. straight line
Office equipment
25% p.a. reducing balance
Computer equipment
25% p.a. straight line

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities.

KINGSGATE COMMUNITY CHURCH
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 17 -
1.8
Fixed asset investments

A subsidiary is an entity controlled by the charity. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

 

Investments in subsidiaries are measured at cost less impairment.

1.9
Impairment of fixed assets

At each reporting end date, the charity reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).

1.10
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing stock to its present location and condition. Cost is calculated using the first in, first out formula. Provision is made for damaged, obsolete and slow-moving stock where appropriate.

1.11
Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, and other short-term liquid investments with original maturities of three months or less.

1.12
Financial instruments

The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Basic financial liabilities

Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

KINGSGATE COMMUNITY CHURCH
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 18 -
Derecognition of financial liabilities

Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled.

1.13
Taxation
The charity is an exempt charity within the meaning of schedule 3 of the Charities Act 2011 and is considered to pass the tests set out in Paragraph 1 Schedule 6 Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes.
1.14
Provisions

Provisions are recognised when the charity has a legal or constructive present obligation as a result of a past event, it is probable that the charity will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

 

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in net income/(expenditure) in the period in which it arises.

1.15
Employee benefits

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.16
Leases

Rentals payable under operating leases, including any lease incentives received, are charged as an expense on a straight line basis over the term of the relevant lease.

2
Critical accounting estimates and judgements

In the application of the charity’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

KINGSGATE COMMUNITY CHURCH
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 19 -
3
Donations and legacies
Unrestricted
Restricted
Total
Total
funds
funds
2023
2022
£
£
£
£
Gifts and offerings
757,507
245,850
1,003,357
685,603
Covenants and gift aid
1,476,154
766,084
2,242,238
1,992,391
Income tax repayments
442,432
141,988
584,420
503,399

Grants received

-
174,137
174,137
95,609
For the year ended 31 December 2023
2,676,093
1,328,059
4,004,152
3,277,002
For the year ended 31 December 2022
2,599,849
677,153
3,277,002

The charity benefits from a number of voluntary hours, unclaimed out-of-pocket expenses and gifts in kind contributed by a number of supporters which are not accounted for. The charity is extremely grateful for all these gifts in kind.

Grants receivable for core activities
Peterborough City Council
-
71,569
71,569
13,619
The Trussell Trust
-
92,140
92,140
51,750
Church Revitalisation Trust
-
10,000
10,000
10,500
Other
-
428
428
19,740
-
174,137
174,137
95,609
4
Charitable activities
2023
2022
£
£

Courses and events

46,632
32,250

Foodbank income

96,370
132,101
Community action income
43,167
22,843

Learning communities

219,537
311,837

Miscellaneous income

19,701
25,617
425,407
524,648
Analysis by fund
Unrestricted funds
109,500
106,796
Restricted funds
315,907
417,852
425,407
524,648
KINGSGATE COMMUNITY CHURCH
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 20 -
5
Other trading activities
2023
2022
£
£

Commercial operations in trading subsidiary

362,286
243,338
6
Other income
Unrestricted
Unrestricted
funds
funds
general
general
2023
2022
£
£
Net gain on disposal of tangible fixed assets
1,298
7,206
7
Raising funds
2023
2022
£
£

Commercial operations in trading subsidiary

Staff costs

164,134
130,379

Direct costs

96,900
48,272

Administrative expenses

17,383
23,020
278,417
201,671
KINGSGATE COMMUNITY CHURCH
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 21 -
8
Charitable activities
2023
2022
£
£
Staff costs
1,773,247
1,678,691
Depreciation
246,712
253,578

Outreach and Community Action

407,117
323,250

Sunday Experience and Connect

259,289
264,231

Pastoral Care

170,940
146,801

Equip and Leadership Development

296,585
293,090

Overseas Mission

109,922
122,957

Facilities

281,591
301,712
3,545,403
3,384,310
Share of support costs (see note 9)
117,607
112,499
Share of governance costs (see note 9)
11,290
11,815
3,674,300
3,508,624
Analysis by fund
Unrestricted funds
2,408,464
2,508,451
Unrestricted funds - designated
246,712
253,578
Restricted funds
1,019,124
746,595
3,674,300
3,508,624
9
Support costs
Support costs
Governance costs
2023
2022
£
£
£
£

Office costs

105,072
-
105,072
102,580

Printing, postage and stationery

5,133
-
5,133
3,282

Photocopying

7,402
-
7,402
6,637
Audit and accountancy fees
-
11,290
11,290
11,815
117,607
11,290
128,897
124,314
10
Trustees

Trustees' remuneration is permitted under certain limited circumstances, if paid as an employee, under the terms of the charity's governing document. During the year, remuneration was paid to one Trustee amounting to £79,212 (2022 - £79,046). Employer pension contributions for this Trustee were £12,621 (2022 - £7,406). No Trustees waived any remuneration.

 

One Trustee (2022 - one) is accruing pension arrangements.

KINGSGATE COMMUNITY CHURCH
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
10
Trustees
(Continued)
- 22 -

During the year two trustees received reimbursement of expenses amounting to £672 (2022 - one trustee received £440) of which £4 (2022 - £nil) was outstanding at the year end and included within trade creditors.

11
Auditor's remuneration

The analysis of auditor's remuneration is as follows:

2023
2022
£
£
Audit of the charity's annual accounts
7,795
7,250
Other services to the group
- the audit of the subsidiary
2,950
2,750
Total audit fees
10,745
10,000
Non-audit services
All other non-audit services - charity
3,495
3,250
All other non-audit services - subsidiary
1,200
1,100
Total non-audit fees
4,695
4,350
12
Surplus for the financial year
As permitted by section 408 of the Companies Act 2006, the holding company's surplus has not been included in these financial statements. The surplus for the financial year is made up as follows:
2023
2022
£
£
Holding company's gross income for the financial year
4,476,399
3,835,664
Holding company's surplus for the financial year
801,287
326,185
KINGSGATE COMMUNITY CHURCH
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 23 -
13
Commercial operations in trading subsidiary
The wholly owned trading subsidiary, KingsGate Trading Limited, which is incorporated in England and Wales, pays a proportion of its profits to the charity by gift aid. KingsGate Trading Limited operates the resources centre and room hire at KingsGate Community Church. The charity owns the entire issued share capital of 1 ordinary share at £1 each. A summary of the trading results is shown below.
2023
2022
KingsGate Trading Limited Profit & Loss Account
£
£
Turnover
361,728
242,742
Cost of sales
(261,034)
(181,795)
Administration costs
(17,577)
(15,618)
Other income and interest received
619
596
Interest payable
(454)
(539)
Net profit
83,282
45,386
Add: sales made to charity
812
994
Less: management charges paid to charity
(36,168)
(23,664)
47,926
22,716
Dividend paid to charity
(9,374)
(3,144)
38,552
19,572
Tax on loss on ordinary activities
587
(3,719)
Retained in the subsidiary
39,139
15,853
2023
2022
KingsGate Trading Limited Balance Sheet
£
£
Fixed assets
7,717
10,680
Current assets
106,428
103,629
Current liabilities
(62,713)
(78,607)
Long term liabilities
-
(23,409)
Total net assets
51,432
12,293
Aggregate share capital and reserves
51,432
12,293
14
Taxation

The charity is exempt from tax on income and gains falling within section 505 of the Taxes Act 1988 or section 252 of the Taxation of Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects.

KINGSGATE COMMUNITY CHURCH
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 24 -
15
Employees
Number of employees

The average monthly number of employees during the year was:

2023
2022
Number
Number
KingsGate Community Church
54
57
KingsGate Trading Limited
20
15
74
72
Employment costs
2023
2023
2023
2022
Charity
Subsidiary
Group
Group
£
£
£
£
Wages and salaries
1,552,640
152,169
1,704,809
1,588,495
Social security costs
146,259
8,129
154,388
149,788
Other pension costs
74,348
3,836
78,184
70,787
1,773,247
164,134
1,937,381
1,809,070
The number of employees whose annual remuneration was £60,000 or more were:
2023
2022
Number
Number
£60,001 - £70,000
2
-
£70,001 - £80,000
1
1

The above employees participated in the pension scheme. During the year ended 31 December 2023, pension contributions for these employee amounted to £18,098 (2022 - £7,406).

KINGSGATE COMMUNITY CHURCH
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 25 -
16
Tangible fixed assets
Group
Freehold land and buildings
Plant and equipment
Total
£
£
£
Cost
At 1 January 2023
8,951,827
1,801,846
10,753,673
Additions
-
123,411
123,411
At 31 December 2023
8,951,827
1,925,257
10,877,084
Depreciation
At 1 January 2023
1,099,570
1,281,644
2,381,214
Depreciation charged in the year
83,871
165,804
249,675
At 31 December 2023
1,183,441
1,447,448
2,630,889
Carrying amount
At 31 December 2023
7,768,386
477,809
8,246,195
At 31 December 2022
7,852,257
520,202
8,372,459
Charity
Freehold land and buildings
Plant and equipment
Total
£
£
£
Cost
At 1 January 2023
9,856,501
1,722,349
11,578,850
Additions
-
123,411
123,411
At 31 December 2023
9,856,501
1,845,760
11,702,261
Depreciation
At 1 January 2023
1,099,570
1,212,827
2,312,397
Depreciation charged in the year
83,871
162,841
246,712
At 31 December 2023
1,183,441
1,375,668
2,559,109
Carrying amount
At 31 December 2023
8,673,060
470,092
9,143,152
At 31 December 2022
8,756,931
509,522
9,266,453

All assets are used for direct charitable purposes.

 

Included within land and buildings is an amount of £1,472,000 (2022 - £1,472,000) in respect of land which is not depreciated.

KINGSGATE COMMUNITY CHURCH
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 26 -
17
Fixed asset investments
Investment in subsidiaries
Group
£
Cost or valuation
At 1 January 2023 & 31 December 2023
-
Charity
Cost or valuation
At 1 January 2023 & 31 December 2023
1

The investment represents a 100% shareholding in KingsGate Trading Limited, a company incorporated in England and Wales.

 

For details of the principal activity and results for the year, see note 13.

18
Financial instruments
Group
Charity
Group
Charity
2023
2023
2022
2022
£
£
£
£
Carrying amount of financial assets
Trade debtors
59,045
20,056
74,564
24,523
Other debtors
1,523
1,523
4,299
4,299
Amounts due from subsidiary undertakings
-
-
-
47,108
Bank and cash
2,463,224
2,439,711
2,395,538
2,358,930
Fixed asset investments
-
1
-
1
Measured at cost
2,523,792
2,461,291
2,474,401
2,434,861
Carrying amount of financial liabilities
Trade creditors
44,859
40,347
41,058
35,463
Accruals
164,897
158,007
81,319
77,481
Bank loans
230,347
230,347
1,158,986
1,129,577
Measured at cost
440,103
428,701
1,281,363
1,242,521
19
Stocks
2023
2023
2022
2022
Group
Company
Group
Company
£
£
£
£
Finished goods and goods for resale
4,505
-
9,872
-
KINGSGATE COMMUNITY CHURCH
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 27 -
20
Debtors
2023
2023
2022
2022
Group
Charity
Group
Charity
Amounts falling due within one year:
£
£
£
£
Trade debtors
59,045
20,056
74,564
24,523
Income tax recoverable
46,773
46,773
38,566
38,566
Amounts due from subsidiary undertakings
-
-
-
47,108
Other debtors
1,523
1,523
4,299
4,299
Prepayments and accrued income
55,814
47,209
36,383
34,449
163,155
115,561
153,812
148,945
Deferred tax asset
5,761
-
5,174
-
168,916
115,561
158,986
148,945
21
Creditors: amounts falling due within one year
2023
2023
2022
2022
Group
Charity
Group
Charity
Notes
£
£
£
£
Bank loans
23
230,347
230,347
325,145
319,145
Other taxation and social security
50,806
37,729
46,932
39,208
Deferred income
18,588
3,750
78,200
70,699
Trade creditors
44,859
42,347
41,058
35,463
Amounts due to subsidiary undertakings
-
2,390
-
-
Other creditors
36,627
35,896
34,070
33,229
Accruals
164,897
156,007
81,319
77,481
546,124
508,466
606,724
575,225

Deferred income for the charity is income received for Learning Communities that relates to the year ended 31 December 2023. Additional deferred income for the group relates to deposits for room hire bookings received in advance.

22
Creditors: amounts falling due after more than one year
2023
2023
2022
2022
Group
Charity
Group
Charity
Notes
£
£
£
£
Bank loans
23
-
-
833,841
810,432
KINGSGATE COMMUNITY CHURCH
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 28 -
23
Loans and overdrafts
2023
2023
2022
2022
Group
Charity
Group
Charity
£
£
£
£
Bank loans
230,347
230,347
1,158,986
1,129,577
Payable within one year
230,347
230,347
325,145
319,145
Payable after one year
-
-
833,841
810,432

The charity bank borrowings are secured over the assets of the group. After the year end the loan was repaid in full.

24
Provision for liabilities
2023
2023
2022
2022
Deferred taxation
Group
Charity
Group
Charity
Balances:
£
£
£
£
Tax losses
5,761
-
5,174
-
2023
Movements in the year:
£
Liability/(Asset) at 1 January 2023
(5,174)
Credit to profit or loss
(587)
Liability/(Asset) at 31 December 2023
(5,761)

The deferred tax asset set out above is expected to reverse within the foreseeable future and relates to the utilisation of tax losses against future expected profits of the same period.

KINGSGATE COMMUNITY CHURCH
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 29 -
25
Restricted funds
Group and Charity
The income funds of the charity include restricted funds comprising the following unexpended balances of donations and grants held on trust for specific purposes:
Movement in funds
Movement in funds
Balance at
1 January 2022

Income

Expenditure

Transfers
Balance at
1 January 2023

Income

Expenditure

Transfers
Balance at
31 December 2023
£
£
£
£
£
£
£
£
£
Building fund - Cambridge
2,321
35,291
-
51,172
88,784
51,763
(5,176)
1,525
136,896
Mission fund
455,997
157,173
(208,765)
20,084
424,489
385,930
(425,102)
68,510
453,827
Body needs fund - Peterborough
16,522
9,375
(5,339)
(1,177)
19,381
3,750
(6,119)
30,255
47,267
Body needs fund - Cambridge
423
200
(900)
1,177
900
-
(900)
4,000
4,000
Foodbank fund
214,252
132,101
(49,365)
-
296,988
100,337
(120,559)
-
276,766
PCAS grant
54,720
-
(51,617)
(3,103)
-
-
-
-
-
Together on purpose
251,308
12,986
(26,057)
(69,151)
169,086
-
(34,278)
(76,088)
58,720
Learning Community fund
88,649
285,451
(271,958)
-
102,142
219,537
(276,014)
-
45,665
2020 vision fund
35,106
-
(4,137)
-
30,969
-
(2,067)
-
28,902
Children's work
8,563
-
(1,000)
-
7,563
-
(5,048)
-
2,515
Parnwell Hub grant
16,704
300
(114)
-
16,890
565
(1,805)
-
15,650
Peterborough - Love Your Neighbour
-
-
-
-
-
10,000
(10,000)
-
-
Coronavirus support grant
31,391
51,750
(62,067)
-
21,074
83,927
(77,266)
-
27,735
Winter Support fund
10,112
3,000
(14,210)
3,103
2,005
40,000
(6,476)
-
35,529
Carried forward to next page
1,186,068
687,627
(695,529)
2,105
1,180,271
895,809
(970,810)
28,202
1,133,472
KINGSGATE COMMUNITY CHURCH
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
25
Restricted funds
(Continued)
- 30 -
Movement in funds
Movement in funds
Balance at
1 January 2022

Income

Expenditure

Transfers
Balance at
1 January 2023

Income

Expenditure

Transfers
Balance at
31 December 2023
£
£
£
£
£
£
£
£
£
Brought forward
1,186,068
687,627
(695,529)
2,105
1,180,271
895,809
(970,810)
28,202
1,133,472
Food Pantry fund
1,165
22,789
(16,529)
10,000
17,425
21,116
(28,046)
-
10,495
Syrian and Afghan Refugees
959
17,156
(18,115)
-
-
9,069
(9,069)
-
-
Romanian Fund
-
1,288
(18)
-
1,270
205
(1,475)
-
-
Care Leavers Goods
19,719
-
(10,604)
-
9,115
-
(6,595)
-
2,520
Care Zone donations
5,800
-
(5,800)
-
-
-
-
-
-
The Church We See
-
366,145
-
(303,516)
62,629
10,169
(1,017)
(25,526)
46,255
Radical Disciples
-
-
-
-
-
685,098
-
(677,007)
8,091
Household Support Fund
-
-
-
-
-
22,500
(2,112)
-
20,388
1,213,711
1,095,005
(746,595)
(291,411)
1,270,710
1,643,966
(1,019,124)
(674,331)
1,221,221
KINGSGATE COMMUNITY CHURCH
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
25
Restricted funds
(Continued)
- 31 -

The Building funds are held to fund improvements to the premises at Peterborough and to finance any future Cambridge building needs. Once expended a transfer is made to a designated fund representing the interest in the land and property.

 

The Mission fund arises from the commitment to spend 10% of all income on mission activities. These include community action, launching new Centres, overseas missions and gifts to other ministries.

 

The Body Needs fund represents funds to support members of the church community who are in financial hardship.

 

The Foodbank fund represents funds provided to support the running of a foodbank across Peterborough.

 

PCAS grant was a grant received from the City Council for the provision of emergency food and furniture upon referral from the Peterborough Community Assistance scheme.

 

The Together on Purpose fund was an offering received in September 2021 to finance key areas of the Together on Purpose vision; Leadership Development, Media and Technology to support our online presence and community action initiatives.

 

The Learning Community fund represents income and expenses in relation to educational events hosted in partnership with Gateway Church (Dallas), ARC and Stewardship.

 

The 2020 Vision fund was an offering received over a 4 year period to finance 5 key areas of the 2020 Vision; Inside out initiatives, Leadership Development, Launching new Centres, Technology and building needs.

 

The Children’s Work fund was a donation received given specifically for the benefit of the Children’s Ministry.

 

The Parnwell Hub grant was a grant received from the City Council to run community development activities in Parnwell with a range of partner agencies.

 

The Love Your Neighbour grant was a grant received from the Church Revitalisation Trust for the provision of emergency food, support the running of Care Zone and to launch a new Debt Advice Service.

 

Coronavirus Support Grant was a grant received from the Trussell Trust to provide information and advice services for Peterborough Foodbank beneficiaries through a partnership with Citizens Advice Peterborough.

KINGSGATE COMMUNITY CHURCH
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
25
Restricted funds
(Continued)
- 32 -

The Winter Support Fund was a grant received from Peterborough City Council for the provision of emergency food and white goods upon referral from the Peterborough Community Assistance scheme.

 

The Peterborough Care Zone - Cambridgeshire Community Foundation provided funding for Care Zone to purchase crockery and saucepan sets for people who had previously experienced homelessness and had been allocated housing.

 

Food Pantry - KingsGate is setting up a food pantry in Parnwell for families facing long term food insecurity.

 

Syrian and Afghan Refugee fund - Care Zone is working in partnership with other organisations to resettle refugees from Syrian and Afghanistan into the city. Peterborough City Council has provided funding to enable to Care Zone to increase its capacity to provide furniture for these families.

 

Romanian Fund included a grant received in 2021 from the local council to help with the COVID relief efforts within the Peterborough Romanian Community, and also includes giving to help support KingsGate members setting up a church in Cluj, Romania.

 

Care Leavers Goods Fund - Peterborough City Council provided funding for Care Zone to supply furniture and white goods to care leavers.

 

Care Zone Donations is a donation received from the Institute of Export to purchase items as needed by the Care Zone.

 

The Church We See fund was an offering received in March 2022. 60% was used to make a one-off mortgage payment, 15% was set aside into a Cambridge building fund and the remainder is for Leadership Development and other projects.

 

The Radical Disciples fund was an offering received in March 2023. 85% was used to make a one-off mortgage payment and 5% was set aside for body needs.

 

The Household Support Fund is a grant awarded by Peterborough City Council to buy food stock for the KingsGate Food Pantry that supports families facing long-term food insecurity and emergency white goods to be distributed by Care Zone.

KINGSGATE COMMUNITY CHURCH
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 33 -
26
Designated funds
The income funds of the charity include the following designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes:
Group
Balance at
1 January 2022

Expenditure

Transfers
Balance at
1 January 2023

Expenditure

Transfers
Balance at
31 December 2023
£
£
£
£
£
£
£
Interest in land and property
6,301,312
(83,871)
505,240
6,722,682
(83,871)
899,230
7,538,041
Interest in fixed assets
587,592
(169,707)
102,317
520,202
(162,842)
120,449
477,809
Fixed asset fund
12,316
-
4,595
16,911
-
-
16,911
6,901,220
(253,578)
612,152
7,259,795
(246,713)
1,019,679
8,032,761
Charity
Balance at
1 January 2022

Expenditure

Transfers
Balance at
1 January 2023

Expenditure

Transfers
Balance at
31 December 2023
£
£
£
£
£
£
£
Interest in land and property
7,205,986
(83,871)
505,240
7,627,356
(83,871)
899,230
8,442,715
Interest in fixed assets
573,182
(169,707)
106,047
509,522
(162,842)
123,412
470,092
Fixed asset fund
12,316
-
4,595
16,911
-
-
16,911
7,791,484
(253,578)
615,882
8,153,789
(246,713)
1,022,642
8,929,718

The designated fund for interest in land and property is an amount transferred from restricted funds in respect of restricted expenditure that has been capitalised in fixed assets. This fund will be utilised as depreciation is charged on the property.

 

The interest in fixed assets fund represents the net book value of equipment and vehicles.

KINGSGATE COMMUNITY CHURCH
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 34 -
26
Unrestricted funds
Group
Movement in funds
Movement in funds
Balance at
1 January 2022

Income

Expenditure

Transfers
Balance at
1 January 2023

Income

Expenditure

Transfers
Balance at
31 December 2023
£
£
£
£
£
£
£
£
£
General fund
1,039,460
2,957,189
(2,710,122)
(320,741)
965,786
3,149,177
(2,686,881)
(345,348)
1,082,734
1,039,460
2,957,189
(2,710,122)
(320,741)
965,786
3,149,177
(2,686,881)
(345,348)
1,082,734
Charity
Movement in funds
Movement in funds
Balance at
1 January 2022

Income

Expenditure

Transfers
Balance at
1 January 2023

Income

Expenditure

Transfers
Balance at
31 December 2023
£
£
£
£
£
£
£
£
£
General fund
1,057,431
2,740,659
(2,508,451)
(325,465)
964,174
2,832,435
(2,409,278)
(348,311)
1,039,020
1,057,431
2,740,659
(2,508,451)
(325,465)
964,174
2,832,435
(2,409,278)
(348,311)
1,039,020
KINGSGATE COMMUNITY CHURCH
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 35 -
28
Analysis of net assets between funds
Group

Unrestricted funds

Designated funds

Restricted funds

Total

Unrestricted funds

Designated funds

Restricted funds

Total
2023
2023
2023
2023
2022
2022
2022
2022
£
£
£
£
£
£
£
£
Fund balances at 31 December 2023 are represented by:
Tangible assets
-
8,246,195
-
8,246,195
-
8,372,459
-
8,372,459
Current assets/(liabilities)
1,082,734
(213,434)
1,221,221
2,090,521
989,195
(302,233)
1,270,710
1,957,672
Long term liabilities
-
-
-
-
(23,409)
(810,432)
-
(833,841)
1,082,734
8,032,761
1,221,221
10,336,716
965,786
7,259,794
1,270,710
9,496,290
Charity

Unrestricted funds

Designated funds

Restricted funds

Total

Unrestricted funds

Designated funds

Restricted funds

Total
2023
2023
2023
2023
2022
2022
2022
2022
£
£
£
£
£
£
£
£
Fund balances at 31 December 2023 are represented by:
Tangible assets
-
9,143,152
-
9,143,152
-
9,266,453
-
9,266,453
Investments
1
-
-
1
1
-
-
1
Current assets/(liabilities)
1,039,019
(213,434)
1,221,221
2,046,806
964,173
(302,233)
1,270,710
1,932,650
Long term liabilities
-
-
-
-
-
(810,432)
-
(810,432)
1,039,020
8,929,718
1,221,221
11,189,959
964,174
8,153,788
1,270,710
10,388,672
KINGSGATE COMMUNITY CHURCH
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 36 -
29
Control

No one individual has overall control of the charity.

 

30
Operating lease commitments
Group and charity

At the reporting end date the charity had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

2023
2022
£
£
Within one year
35,985
39,762
Between two and five years
22,710
58,695
58,695
98,457
31
Related party transactions
Remuneration of key management personnel

The total amount of employee benefits (including employer's pension contributions) received by key management personnel is £504,349 (2022 - £478,478). The charity considers its key management personnel comprises of the members of the Multisite Strategy team.

Transactions with related parties

During the year management charges of £36,168 (2022 - £23,664) were charged to KingsGate Trading Limited, a subsidiary company. Wages costs are recharged between the Charity and its subsidiary, resulting in a net income to the Charity of £15,794 (2022 - net income of £18,090). A gift aided donation of £9,374 (2022 - £3,144) was also received from KingsGate Trading Limited with a further £41,515 (2022 - £nil) to be paid after the year end. Included within creditors is £2,390 due to KingsGate Trading Limited (2022 - included in other debtors is £47,108 due from KingsGate Trading Limited) .

 

Donations of £111,125 (2022 - £90,220) were received during the year from seven Trustees or Directors of the subsidiary company (2022 - eight). No conditions were attached to these donations.

 

During a prior year the charity had an arrangement with a third party to create videos based on a book authored by D Smith, a trustee. Many churches and individuals benefitted from the videos, as did KingsGate. The creation of the videos promoted books sales and therefore may have impacted on royalties earned by D Smith, but it is not possible to quantify the effect. A proportion of royalties from the book earned by D Smith will be gifted back to the project and the church will receive an equal share of any surplus generated from video sales over and above costs incurred.

KINGSGATE COMMUNITY CHURCH
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 37 -
32
Cash generated from operations
2023
2023
2022
2022
Group
Charity
Group
Charity
£
£
£
£
Surplus for the year
840,426
801,287
341,899
326,046
Adjustments for:
Gain on disposal of tangible fixed assets
(1,298)
(1,298)
(7,206)
(7,374)
Depreciation of tangible fixed assets
249,675
246,712
257,140
253,578
Movements in working capital:
Decrease in stocks
5,367
-
4,670
-
(Increase)/decrease in debtors
(9,930)
33,384
(63,582)
(40,959)
(Decrease) in creditors
34,198
22,039
(18,192)
(26,197)
Cash generated from operations
1,118,438
1,102,124
514,729
505,094
33
Analysis of changes in net funds
Group
At 1 January 2023
Cash flows
At 31 December 2023
£
£
£
Cash at bank and in hand
2,395,538
67,686
2,463,224
Loans falling due within one year
(325,145)
94,798
(230,347)
Loans falling due after more than one year
(833,841)
833,841
-
1,236,552
996,325
2,232,877
Charity
At 1 January 2023
Cash flows
At 31 December 2023
£
£
£
Cash at bank and in hand
2,358,930
80,781
2,439,711
2,358,930
80,781
2,439,711
Loans falling due within one year
(319,145)
88,798
(230,347)
Loans falling due after more than one year
(810,432)
810,432
-
1,229,353
980,011
2,209,364
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