Charity registration number 1119560
Company registration number 06212770 (England and Wales)
KINGS COMMUNITY CHURCH (SOUTHAMPTON)
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
KINGS COMMUNITY CHURCH (SOUTHAMPTON)
LEGAL AND ADMINISTRATIVE INFORMATION
Trustees
Mr I Chiddle
Ms E Curtayne
Mr P Grant
Mr R Hemming
Ms S Lau
Mr S McIntyre
Mrs H Quarshie
Mr J Treacher
Mr Ian Conabeer
(Appointed 29 January 2024)
Secretary
Mr G Brombley
Charity number
1119560
Company number
06212770
Registered office
Sovereign Place
Upper Northam Road
Hedge End
Southampton
Hampshire
SO30 4BZ
Auditor
Sumer Audit
Piper House
4 Dukes Court
Bognor Road
Chichester
West Sussex
PO19 8FX
Bankers
Barclays Bank plc
PO Box 612
Barclays House
Southampton
Hampshire
BX3 2BB
Triodos Bank NV
Deanery Road
Bristol
BS1 5AS
KINGS COMMUNITY CHURCH (SOUTHAMPTON)
CONTENTS
Page
Trustees' report
1 - 5
Independent auditor's report
6 - 9
Statement of financial activities
10 - 11
Balance sheet
12  -  14
Statement of cash flows
15
Notes to the financial statements
16 - 36
KINGS COMMUNITY CHURCH (SOUTHAMPTON)
TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT)
FOR THE YEAR ENDED 31 MARCH 2024
- 1 -

The trustees present their annual report and financial statements for the year ended 31 March 2024.

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)" (effective 1 January 2019).

Objectives and activities

The trustees regularly review the aims, objectives and activities of the charity. They have considered the Charity Commission’s general guidance on public benefit and its supplementary guidance on the advancement of religion for the public benefit.

 

King’s Community Church (Southampton) is a member of the national body of the Evangelical Alliance, as well as being a part of the New Frontiers and Catalyst groups of churches. The Church is best described as a bible believing charismatic Christian church. As such, its highest purpose is to honour Jesus Christ as Lord by seeking to love and serve God, each other in the church and those in the world around us. Specifically we aim to:

We seek to further these objects by providing meetings for corporate worship, fellowship and prayer. More intimate fellowship and sharing opportunities come in the regular connect group meetings. There are specific training courses for new Christians and for various ministry skills useful in the church.

 

We have a number of activities for young people from the church and local community. These include events for youth and primary school aged children, Chuckles for parents and toddlers, as well as small group meetings for bible study and worship. Our aim is to make all these meetings relevant to young people so that they are able to come to a personal experience of the love of God and find expression for their faith in him.

 

Our outreach to the community includes a ministry for the elderly, as well as a variety of events that will appeal to those who are unchurched. Church members are involved in various voluntary groups, charitable organisations and also direct evangelical enterprises to win people to Christ. Again, our purpose is for people of all ages to come to a place of faith in Christ.

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

Grant making policy

The trustees consider the making of grants to be an effective way of providing support primarily to overseas churches. In conjunction with the elders they review commitments each year as part of the budget setting process. If additional needs arise, these are presented to the church and an offering is taken up.

 

Applications for grants are not invited.

Volunteers

The church is involved in a wide range of ministry to the local community and internationally. This would not be possible without the voluntary efforts of a large number of the church’s members and the trustees are grateful for all the time they have given, often sacrificially.

Achievements and performance

The Church has continued to grow throughout the year and now we regularly see over 900 people attending across our 2 locations and 3 meetings (2 in Hedge End, 1 in Totton). There have been multiple times in the last year when in person Sunday attendance is over 1000.

KINGS COMMUNITY CHURCH (SOUTHAMPTON)
TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 2 -

We are seeing continued growth at our Totton site with an average attendance of around 70 adults and children, we are continuing to work towards our target of 100.

 

At the end of the 2023/24 financial year we started a church in Weston, Hope City Church Southampton. This was started in partnership with the local Anglican Church, Holy Trinity Weston and Weston Community Youth Project, together we successfully applied for grant funding which enabled the new church to be started. This was one of the organisational goals for the year. The majority of the social action ministries that King’s Community Church runs in Weston from the Hope Centre, will be transferred to the new church in the next financial year. Approximately 35 adults and children moved from King’s Community Church to Hope City Church, the trustees feel this will have a small impact on giving throughout the coming year which has been taken into account throughout the budgeting process.

We took the sad decision to close part of our elderly ministry due to the increased skills, training and experience required of the team. Those attending were increasingly fragile and the requirements were becoming unachievable with unpaid staff.

 

The construction of a sensory room has been delayed. The Trustees have decided to pause the project until the financial picture is clearer due to significant increases in the build costs. It is our hope that this project will be completed within the next financial year.

Our Community Outreach activities have been sustained throughout the year, supporting people in need in our local area. Our Food Centre has seen significantly increased activity and we are grateful for the many organisations and individuals that have supported it through grants and donations of food. Last year (2023) the increasing number of volunteers at Hedge End made up 1423 food parcels, providing food to 4299 local people and in Weston made up 635 parcels , providing food to 1707 people.

 

We are keeping our social action ministry under review and have appointed a new member of staff to oversee our work and with the objective of putting together a vision and plan for our community outreach ministries going forward. We are continuing to encourage personal evangelism among the church members and have plans in place for 2024/25 to support this effort

 

We did not achieve our goal of increasing the number of volunteers on serving teams by 30% with 70% of members serving in at least one role. We ended the financial year with 55% of church members serving, which is similar to the percentage from the previous year.

Financial review

A substantial proportion of the church’s income comes from the regular giving of its members for which the elders and trustees are extremely grateful. This exceeded expectations and was £1,173,969 an increase of 13% from the previous year (2023:£1,036,797)

 

The Special offering in 2024 was £149,768 and was for use towards the core costs of the church including community outreach ministries and the mortgage repayments. The special offering has been classed as unrestricted funds. As part of this offering, we often receive pledges of future donations; these are recognised upon receipt and hence will fall into the 2024/25 accounts.

 

Our conferencing and cafe activity has performed well and achieved a profit of £82,608 (2023: £80,642).

 

This year we benefited from a lease settlement because one of our large office rental leases was terminated early, resulting in higher rental income than in previous years. In the coming year, this will result in a reduction in recurring income of approximately £70,000, and we are looking to recover part of this by letting some of the vacated office space.

Expenditure has been kept constantly under review with the priority being to continue as much ministry as possible within the bounds of financial prudence.

 

The church owns the property, 9 Upper Northam Close (Glenbourne), this is an investment in the accounts as it is no longer being used for ministry and is being let out to tenants. The trustees intend to sell this property in 2024/25 financial year with some remedial works being done in the first half of 2024/25.

KINGS COMMUNITY CHURCH (SOUTHAMPTON)
TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 3 -

The total funds held by the charitable group at the balance sheet date are £3,388,938 (2023: £3,336,798). Included in this are £113,339 (2023: £126,811) held in restricted funds and £2,844,954 (2023: £2,895,960) held in designated funds.

 

The trustees have considered a number of factors in reviewing the level of reserves required:

 

The trustees consider that the level of free reserves, after allowing for unrestricted reserves tied up in fixed assets and investments, should be between one and three months expenditure.

 

Free reserves are £342,396 for the Church and £430,645 for the group, which is around 3 months of expenditure.

The trustees have a risk management strategy that includes an annual review of the principle risks and uncertainties facing the charity and its subsidiaries and the establishment of policies and procedures to mitigate those risks.

Plans for future periods

The trustees feel we are well placed to continue our growth strategy and fulfil our mission of preaching the gospel across the Solent area.

 

Our objectives for the coming year are:

 

• Sell 9 Upper Northam Close (Glenbourne).

• To start the build of the sensory room project.

• Start to overpay on the mortgage.

• To continue to develop our Sundays and the related serving teams.

• To invest in staff and leadership wellbeing.

• Continue to develop a clear pipeline of leaders.

• To have a vision and plan for our community outreach ministries.

Structure, governance and management

The church was originally established by a Declaration of Trust dated 20 January 1986 and the assets and liabilities were transferred to Kings Community Church (Southampton), a company limited by guarantee, on 1 April 2008 in order to improve the administration of the charity.

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:

 

Mr I Chiddle
Ms E Curtayne
Mr M Fakley
(Resigned 27 November 2023)
Mr P Grant
Mr R Hemming
Ms S Lau
Mr S McIntyre
Mrs H Quarshie
Mr J Treacher
Mr Ian Conabeer
(Appointed 29 January 2024)
KINGS COMMUNITY CHURCH (SOUTHAMPTON)
TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 4 -

The elders of the church are the members of the company and they appoint the trustees, who remain in office thereafter. The trustees of the charity are drawn from the active members of the church with the appropriate skills for Board membership.

 

None of the trustees has any beneficial interest in the company.

The trustees focus their attention on strategic and policy issues including key financial decisions. The day to day management of the charity is delegated to a management team consisting of Andrew Johnston, Nicholas Brennan and Emma Roberts. Spiritual matters are overseen by the elders of the church. The trustees meet from time to time with the elders to ensure that strategy and policy are consistent with the spiritual aims of the church.

 

The elders of the church during the year were:

 

Sam Afari

Christopher Allison

John Banks

Nicholas Brennan

Martin Hughes

Andrew Johnston

Christopher Johnston

Victor Lau

Maurice Redmill

Tom Williams

The elders of the church are the members of the company and guarantee to contribute £1 in the event of a winding up.

 

The training of elders and trustees is discussed at their meetings and the church budget includes provision for the costs of any required training to be met.

The remuneration of key management is reviewed annually by the Trustees. Each role within the church is subject to an evaluation process that considers its responsibilities and the skills and experience required to fulfil it. Pay scales are compared with the market and similar organisations. Pay levels are generally set below the average for the private & public sectors.

 

The Trustees have adopted the Charity Governance Code and used an assessment template to understand the current level of compliance. An improvement action plan has been prepared and progress will be monitored during the coming year.

The church has one wholly owned subsidiary, KCC Enterprises Ltd, which undertakes commercial activities on behalf of the church.

Asset cover for funds

Note 30 sets out an analysis attributable to the various funds and a description of the trusts. These assets are sufficient to meet the charity’s obligations on a fund by fund basis.

KINGS COMMUNITY CHURCH (SOUTHAMPTON)
TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 5 -
Statement of trustees' responsibilities

The trustees, who are also the directors of Kings Community Church (Southampton) 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.

Auditor

The auditor, Sumer Audit, is deemed to be re-appointed under s487(2) of the Companies Act 2006.

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 any such relevant information and to establish that the auditor is aware of such information.

 

This report has been prepared in accordance with the special provisions relating to small companies within Part 15 of the Companies Act 2006.

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

Mr P Grant
Trustee
21 October 2024
KINGS COMMUNITY CHURCH (SOUTHAMPTON)
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF KINGS COMMUNITY CHURCH (SOUTHAMPTON)
- 6 -

Opinion

We have audited the financial statements of Kings Community Church (Southampton) (the ‘charity and the group') for the year ended 31 March 2024 which comprise the statement of financial activities, the balance sheet, the statement of cash flows and notes to the financial statements, including 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 charitable company and group's affairs as at 31 March 2024 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended;

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

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

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the charity and the group 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 and the group's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

 

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

Other information

The trustees are responsible for the other information. The other information comprises the information included in the annual report other than the financial statements and our 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.

 

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the 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.

KINGS COMMUNITY CHURCH (SOUTHAMPTON)
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF KINGS COMMUNITY CHURCH (SOUTHAMPTON)
- 7 -

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.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the charity and the group 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 and group'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.

KINGS COMMUNITY CHURCH (SOUTHAMPTON)
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF KINGS COMMUNITY CHURCH (SOUTHAMPTON)
- 8 -
Identification and assessment of irregularities including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We designed procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures were capable of detecting irregularities, including fraud is detailed below:

Audit response to the risk of irregularities including fraud

Based on the results of our risk assessment, our procedures included, but were not limited to:

Conclusions regarding the risks of irregularities including fraud

 

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

We considered our audit was capable of detecting irregularities due to:

 

KINGS COMMUNITY CHURCH (SOUTHAMPTON)
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF KINGS COMMUNITY CHURCH (SOUTHAMPTON)
- 9 -

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.

Use of our report

This report is made solely to the company’s and group'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 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 company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Robin Evans BA FCA CTA DChA (Senior Statutory Auditor)
for and on behalf of Sumer Audit
22 October 2024
Chartered Certified Accountants
Statutory Auditor
Piper House
4 Dukes Court
Bognor Road
Chichester
West Sussex
PO19 8FX
Sumer Audit is a trading name of Sumer Auditco Limited
KINGS COMMUNITY CHURCH (SOUTHAMPTON)
STATEMENT OF FINANCIAL ACTIVITIES (CONSOLIDATED)
INCLUDING INCOME AND EXPENDITURE ACCOUNT
FOR THE YEAR ENDED 31 MARCH 2024
- 10 -
Unrestricted
Restricted
Total
Unrestricted
Restricted
Total
funds
funds
funds
funds
2024
2024
2024
2023
2023
2023
Notes
£
£
£
£
£
£
Income from:
Donations and legacies
3
1,137,243
59,726
1,196,969
980,894
84,718
1,065,612
Charitable activities
4
46,010
570
46,580
21,324
1,416
22,740
Other trading activities
5
295,941
-
295,941
221,748
-
221,748
Investments
6
3,213
-
3,213
563
-
563
Other income
7
114,977
-
114,977
108,601
-
108,601
Total income
1,597,384
60,296
1,657,680
1,333,130
86,134
1,419,264
Expenditure on:
Raising funds
8
198,730
-
198,730
146,762
-
146,762
Charitable activities
9
1,334,305
72,505
1,406,810
1,179,090
117,868
1,296,958
Total expenditure
1,533,035
72,505
1,605,540
1,325,852
117,868
1,443,720
Net gains/(losses) on investments
15
-
-
-
297,900
-
297,900
Net incoming/(outgoing) resources before transfers
64,349
(12,209)
52,140
305,178
(31,734)
273,444
Gross transfers between funds
29
1,263
(1,263)
-
121,069
(121,069)
-
Net income/(expenditure) for the year
Net movement in funds
65,612
(13,472)
52,140
426,247
(152,803)
273,444
Fund balances at 1 April 2023
3,209,987
126,811
3,336,798
2,783,740
279,614
3,063,354
Fund balances at 31 March 2024
3,275,599
113,339
3,388,938
3,209,987
126,811
3,336,798

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.
KINGS COMMUNITY CHURCH (SOUTHAMPTON)
STATEMENT OF FINANCIAL ACTIVITIES (CHARITY ONLY)
INCLUDING INCOME AND EXPENDITURE ACCOUNT
FOR THE YEAR ENDED 31 MARCH 2024
- 11 -
Unrestricted
Restricted
Total
Unrestricted
Restricted
Total
funds
funds
funds
funds
2024
2024
2024
2023
2023
2023
Notes
£
£
£
£
£
£
Income from:
Donations and legacies
3
1,137,243
59,726
1,196,969
980,894
84,718
1,065,612
Charitable activities
4
46,010
570
46,580
21,324
1,416
22,740
Investments
6
79,085
-
79,085
563
-
563
Other income
7
129,579
-
129,579
106,101
-
106,101
Total income
1,391,917
60,296
1,452,213
1,108,882
86,134
1,195,016
Expenditure on:
Charitable activities
9
1,334,305
72,505
1,406,810
1,179,090
117,868
1,296,958
Total expenditure
1,334,305
72,505
1,406,810
1,179,090
117,868
1,296,958
Net gains/(losses) on investments
15
-
-
-
297,900
-
297,900
Net incoming/(outgoing) resources before transfers
57,612
(12,209)
45,403
227,692
(31,734)
195,958
Gross transfers between funds
29
1,263
(1,263)
-
121,069
(121,069)
-
Net income/(expenditure) for the year
Net movement in funds
58,875
(13,472)
45,403
348,761
(152,803)
195,958
Fund balances at 1 April 2023
3,128,475
126,811
3,255,286
2,779,714
279,614
3,059,328
Fund balances at 31 March 2024
3,187,350
113,339
3,300,689
3,128,475
126,811
3,255,286

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.
KINGS COMMUNITY CHURCH (SOUTHAMPTON)
BALANCE SHEET (CONSOLIDATED)
AS AT
31 MARCH 2024
31 March 2024
- 12 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
17
4,781,017
4,934,580
Investment property
19
495,000
495,000
5,276,017
5,429,580
Current assets
Stocks
20
2,581
774
Debtors
21
113,423
225,311
Cash at bank and in hand
521,427
362,821
637,431
588,906
Creditors: amounts falling due within one year
22
(157,452)
(237,886)
Net current assets
479,979
351,020
Total assets less current liabilities
5,755,996
5,780,600
Creditors: amounts falling due after more than one year
23
(2,367,058)
(2,443,802)
Net assets
3,388,938
3,336,798
Income funds
Restricted funds
29
113,339
126,811
Unrestricted funds
Designated funds:
Fixed Asset fund
2,812,954
2,895,960
Mortgage fund
15,000
-
Sick pay reserve
17,000
-
30
2,844,954
2,895,960
General unrestricted funds
430,645
314,027
3,275,599
3,209,987
3,388,938
3,336,798

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

KINGS COMMUNITY CHURCH (SOUTHAMPTON)
BALANCE SHEET (CONSOLIDATED)
AS AT
31 MARCH 2024
31 March 2024
- 13 -
The financial statements were approved by the Trustees on 21 October 2024
Mr P Grant
Trustee
Company registration number 06212770
KINGS COMMUNITY CHURCH (SOUTHAMPTON)
BALANCE SHEET (CHARITY ONLY)
AS AT
31 MARCH 2024
31 March 2024
- 14 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
17
4,777,858
4,930,368
Investment property
19
495,000
495,000
Investments
18
1,000
1,000
5,273,858
5,426,368
Current assets
Debtors
21
110,194
177,633
Cash at bank and in hand
438,416
330,861
548,610
508,494
Creditors: amounts falling due within one year
22
(154,721)
(235,774)
Net current assets
393,889
272,720
Total assets less current liabilities
5,667,747
5,699,088
Creditors: amounts falling due after more than one year
23
(2,367,058)
(2,443,802)
Net assets
3,300,689
3,255,286
Income funds
Restricted funds
29
113,339
126,811
Unrestricted funds
Designated funds:
Fixed Asset fund
2,812,954
2,895,960
Mortgage fund
15,000
-
Sick pay reserve
17,000
-
30
2,844,954
2,895,960
General unrestricted funds
342,396
232,515
3,187,350
3,128,475
3,300,689
3,255,286
KINGS COMMUNITY CHURCH (SOUTHAMPTON)
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2024
- 15 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
28
240,101
80,680
Investing activities
Purchase of tangible fixed assets
(6,809)
(46,724)
Investment income received
3,213
563
Net cash used in investing activities
(3,596)
(46,161)
Financing activities
Repayment of bank loans
(77,899)
(93,293)
Net cash used in financing activities
(77,899)
(93,293)
Net increase/(decrease) in cash and cash equivalents
158,606
(58,774)
Cash and cash equivalents at beginning of year
362,821
421,595
Cash and cash equivalents at end of year
521,427
362,821
KINGS COMMUNITY CHURCH (SOUTHAMPTON)
NOTES TO THE  FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
- 16 -
1
Accounting policies
Company information

Kings Community Church (Southampton) is a private company limited by guarantee incorporated in England and Wales governed by its Memorandum and Articles of Association dated 13 April 2007. The registered office is Sovereign Place, Upper Northam Road, Hedge End, Southampton, Hampshire, SO30 4BZ.

1.1
Accounting convention

The financial statements have been prepared in accordance with the charity's governing document, the Companies Act 2006, FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the Charities SORP "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)" (effective 1 January 2019). 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 financial statements have been prepared under the historical cost convention, [modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value]. The principal accounting policies adopted are set out below.

1.2
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.

1.3
Charitable funds

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

Designated funds comprise funds which have been set aside at the discretion of the trustees for specific purposes. The purposes and uses of the designated funds are set out in the notes to the financial statements.

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.

1.4
Income

Income including grants 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.

Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.

Legacies are recognised on receipt or otherwise if the charity has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.
KINGS COMMUNITY CHURCH (SOUTHAMPTON)
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies (Continued)
- 17 -
1.5
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.

1.6
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.

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 basis:

Freehold land and buildings
2% Straight Line
Fixtures and fittings
20% Straight Line
Motor vehicles
20% Reducing Balance

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.

Assets purchased are capitalised if they are anticipated to be used within the Church's activities for at least 12 months, and cost in excess of £1,000 (net of VAT).

1.7
Investment property

Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. The surplus or deficit on revaluation is recognised in profit or loss.

1.8
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).

1.9
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition. Items held for distribution at no or nominal consideration are measured the lower of replacement cost and cost.

Net realisable value is the estimated selling price less all estimated costs of completion and costs to be incurred in marketing, selling and distribution.

KINGS COMMUNITY CHURCH (SOUTHAMPTON)
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies (Continued)
- 18 -
1.10
Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.11
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.

Derecognition of financial liabilities

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

1.12
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.

1.13
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

KINGS COMMUNITY CHURCH (SOUTHAMPTON)
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 19 -
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.

3
Donations and legacies
Unrestricted
Restricted
Total
Unrestricted
Restricted
Total
funds
funds
funds
funds
2024
2024
2024
2023
2023
2023
£
£
£
£
£
£
Donations and gifts
1,137,243
36,726
1,173,969
974,698
62,099
1,036,797

Grant Income

-
23,000
23,000
6,196
22,619
28,815
1,137,243
59,726
1,196,969
980,894
84,718
1,065,612
KINGS COMMUNITY CHURCH (SOUTHAMPTON)
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 20 -
4
Charitable activities

Church Activities

Youth Work

Community Outreach

Total
2024

Church Activities

Youth Work

Community Outreach

Total
2023
2024
2024
2024
2023
2023
2023
£
£
£
£
£
£
£
£

Sales within charitable activities

17,443
28,567
570
46,580
4,205
17,119
1,416
22,740
Analysis by fund
Unrestricted funds
17,443
28,567
-
46,010
4,205
17,119
-
21,324
Restricted funds
-
-
570
570
-
-
1,416
1,416
17,443
28,567
570
46,580
4,205
17,119
1,416
22,740
KINGS COMMUNITY CHURCH (SOUTHAMPTON)
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 21 -
5
Other trading activities
Unrestricted
Unrestricted
funds
funds
2024
2023
£
£

Non-charitable trading activities via subsidiary company

295,941
221,748
6
Investments
Unrestricted
Unrestricted
funds
funds
2024
2023
£
£
Interest receivable
3,213
563

The charity only Statement of Financial Activities also includes distributions received from the trading subsidiary of £75,872 (2023: £0).

7
Other income
Unrestricted
Unrestricted
funds
funds
2024
2023
£
£

Car park rental and miscellaneous income

27,744
17,912

Office rent income

87,233
88,189

Other income, including coronavirus grants

-
2,500
114,977
108,601

The charity only Statement of Financial Activities also includes a recharge to the subsidiary for rent, utilities and administration support of £14,602 (2023: £0).

KINGS COMMUNITY CHURCH (SOUTHAMPTON)
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 22 -
8
Expenditure on raising funds
Unrestricted
Unrestricted
funds
funds
2024
2023
£
£
Trading costs
Operating trading company undertaking non-charitable trading activity
86,441
67,181
Staff costs
104,839
77,583
Support costs
7,450
1,998
198,730
146,762
9
Charitable activities

Church Activities

Youth Work

Community outreach

International outreach

Total
2024
Total
2023
2024
2024
2024
2024
£
£
£
£
£
£
Staff costs
330,298
76,676
41,287
5,898
454,159
398,132

Activities undertaken directly

45,538
38,727
27,437
3,725
115,427
97,295

Pastoral costs

3,453
52
417
-
3,922
4,247

Office and administration costs

4,944
(23)
2,190
28
7,139
10,044

Property & equipment running and maintenance

74,325
1,762
6,865
3
82,955
111,551
458,558
117,194
78,196
9,654
663,602
621,269
Grant funding of activities (see note 10)
8,627
-
4,823
56,528
69,978
78,801
Share of support costs (see note 11)
440,322
121,234
83,029
9,095
653,680
573,930
Share of governance costs (see note 11)
13,169
3,626
2,483
272
19,550
22,958
920,676
242,054
168,531
75,549
1,406,810
1,296,958
Analysis by fund
Unrestricted funds
915,984
242,054
132,352
43,915
1,334,305
1,179,090
Restricted funds
4,692
-
36,179
31,634
72,505
117,868
920,676
242,054
168,531
75,549
1,406,810
1,296,958
KINGS COMMUNITY CHURCH (SOUTHAMPTON)
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
9
Charitable activities (Continued)
- 23 -
For the year ended 31 March 2023

Church Activities

Youth Work

Community outreach

International outreach

Total
2023
£
£
£
£
£
Staff costs
289,550
67,217
36,194
5,171
398,132

Activities undertaken directly

28,903
36,173
25,821
6,398
97,295

Pastoral costs

1,670
272
2,305
-
4,247

Office and administration costs

5,954
1,015
3,021
54
10,044

Property & equipment running and maintenance

105,048
1,434
5,069
-
111,551
431,125
106,111
72,410
11,623
621,269
Grant funding of activities (see note 10)
9,456
-
7,795
61,550
78,801
Share of support costs (see note 11)
392,334
96,562
74,457
10,577
573,930
Share of governance costs (see note 11)
15,694
3,863
2,978
423
22,958
848,609
206,536
157,640
84,173
1,296,958
Analysis by fund
Unrestricted funds
837,738
206,536
118,645
16,171
1,179,090
Restricted funds
10,871
-
38,995
68,002
117,868
848,609
206,536
157,640
84,173
1,296,958
KINGS COMMUNITY CHURCH (SOUTHAMPTON)
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 24 -
10
Grants payable

Church Activities

Community outreach

International outreach

Total

Church Activities

Community outreach

International outreach

Total
2024
2024
2024
2024
2023
2023
2023
2023
£
£
£
£
£
£
£
£
Grants to institutions:
King's Church, Christchurch, New Zealand
-
-
-
-
-
-
5,500
5,500
Care and Relief for the Young
-
-
6,057
6,057
-
-
7,500
7,500
Christians against poverty
-
3,700
-
3,700
-
7,200
-
7,200
Ukraine relief support
-
-
-
-
-
-
7,500
7,500
Shalom Church, Bulgaria
-
-
-
-
-
-
3,500
3,500
Other
3,902
100
1,041
5,043
1,410
595
7,293
9,298
3,902
3,800
7,098
14,800
1,410
7,795
31,293
40,498
Grants to individuals
4,725
1,023
49,430
55,178
8,046
-
30,257
38,303
8,627
4,823
56,528
69,978
9,456
7,795
61,550
78,801
KINGS COMMUNITY CHURCH (SOUTHAMPTON)
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 25 -
11
Support costs
Support costs
Governance costs
2024
Support costs
Governance costs
2023
£
£
£
£
£
£
Staff costs
135,659
-
135,659
118,926
-
118,926
Depreciation
159,319
-
159,319
167,186
-
167,186

Other costs

16,852
-
16,852
15,728
-
15,728

Pastoral costs

902
-
902
1,519
-
1,519

Office and administration costs

262,885
-
262,885
192,403
-
192,403

Property & equipment running and maintenance

70,689
-
70,689
69,550
-
69,550

Grant related costs

7,374
-
7,374
8,618
-
8,618
Audit fees
-
6,040
6,040
-
5,790
5,790
Accountancy
-
14,560
14,560
-
18,208
18,208
Legal and professional
-
6,400
6,400
-
958
958
653,680
27,000
680,680
573,930
24,956
598,886
Analysed between
Trading
-
7,450
7,450
-
1,998
1,998
Charitable activities
653,680
19,550
673,230
573,930
22,958
596,888
653,680
27,000
680,680
573,930
24,956
598,886
12
Net movement in funds
2024
2023
£
£
The net movement in funds is stated after charging/(crediting):
Fees payable for the audit of the charity's financial statements
6,040
5,790
Depreciation of owned tangible fixed assets
160,372
170,260
13
Trustees

The Articles of Association provide for a minority of the trustees to be paid. None of the trustees received any remuneration during the year for their role as trustees.

 

During the year, one trustee received a payment of £152 for casual work done during the period of their trusteeship.

 

Emma Curtayne has been employed as a Children's Work and her total remuneration for the year was £16,014 (2023: £9,334).

 

Total expenses of £407 were reimbursed to trustees, and their related parties, for Church running and operational costs (2023 £3,187).

 

Identifiable donations from trustees, and their related parties, amounted to £46,409 during the year (2023: £26,689. This excludes amounts where the donor is not identifiable, where the donations were given in cash etc.

KINGS COMMUNITY CHURCH (SOUTHAMPTON)
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 26 -
14
Employees

The average monthly number of employees during the year, calculated on a full-time equivalent basis, was:

2024
2023
Number
Number
Church activities
9
9
Youth work
3
3
Community outreach
1
1
Management and administration
4
4
Subsidiary companies
2
3
Total
19
20
Employment costs
2024
2023
£
£
Wages and salaries
634,465
538,966
Social security costs
33,483
32,127
Other pension costs
26,709
23,548
694,657
594,641

During the year there were redundancy costs of £5,951 (2023: £0).

There were no employees whose annual remuneration was more than £60,000.
15
Net gains/(losses) on investments
Total
Unrestricted
funds
2024
2023
£
£
Revaluation of investments
-
297,900

See note 19 for additional detail.

16
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.

KINGS COMMUNITY CHURCH (SOUTHAMPTON)
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 27 -
17
Tangible fixed assets
Group
Freehold land and buildings
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
Cost
At 1 April 2023
6,167,029
544,067
4,000
6,715,096
Additions
2,844
3,965
-
6,809
At 31 March 2024
6,169,873
548,032
4,000
6,721,905
Depreciation and impairment
At 1 April 2023
1,310,481
466,035
4,000
1,780,516
Depreciation charged in the year
114,133
46,239
-
160,372
At 31 March 2024
1,424,614
512,274
4,000
1,940,888
Carrying amount
At 31 March 2024
4,745,259
35,758
-
4,781,017
At 31 March 2023
4,856,548
78,032
-
4,934,580
Charity only
Freehold land and buildings
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
Cost
At 1 April 2023
6,167,029
499,014
4,000
6,670,043
Additions
2,844
3,965
-
6,809
At 31 March 2024
6,169,873
502,979
4,000
6,676,852
Depreciation and impairment
At 1 April 2023
1,310,481
425,194
4,000
1,739,675
Depreciation charged in the year
114,133
45,186
-
159,319
At 31 March 2024
1,424,614
470,380
4,000
1,898,994
Carrying amount
At 31 March 2024
4,745,259
32,599
-
4,777,858
At 31 March 2023
4,856,548
73,820
-
4,930,368

 

The freehold land and buildings are subject to a charge in favour of Triodos Bank NV.

KINGS COMMUNITY CHURCH (SOUTHAMPTON)
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 28 -
18
Fixed asset investments
Charity only
Other investments
Cost or valuation
At 1 April 2023 & 31 March 2024
1,000
Carrying amount
At 31 March 2024
1,000
At 31 March 2023
1,000

Other Investments above includes the £1,000 of share capital held in KCC Enterprises Ltd, the subsidiary of the main charity. These investments have been eliminated on consolidation.

19
Investment property
2024
£
Fair value
At 1 April 2023 and 31 March 2024
495,000

Investment property comprises of the property known as Glenbourne. The fair value of the investment property has been arrived at on the basis of a valuation carried out at 18 May 2022 by Eddisons Chartered Surveyors, who are not connected with the charity. The valuation was made on an open market value basis by reference to market evidence of transaction prices for similar properties. The trustees do not consider that this value has altered materially by the year end.

If investment properties were stated on an historical cost basis rather than a fair value basis, the amounts would have been included as follows:
2024
2023
£
£
Cost
273,750
273,750
Accumulated depreciation
(87,600)
(82,125)
Carrying amount
186,150
191,625
2024
2023
£
£
Freehold
495,000
495,000
KINGS COMMUNITY CHURCH (SOUTHAMPTON)
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 29 -
20
Stocks
Group
Charity
Group
Charity
2024
2024
2023
2023
£
£
£
£
Finished goods and goods for resale
2,581
-
774
-
21
Debtors
Group
Charity
Group
Charity
2024
2024
2023
2023
Amounts falling due within one year:
£
£
£
£
Trade debtors
23,828
4,055
60,255
914
Amounts owed by subsidiary undertakings
-
17,382
-
11,663
Other debtors
76,634
76,343
159,755
159,755
Prepayments and accrued income
12,961
12,414
5,301
5,301
113,423
110,194
225,311
177,633
22
Creditors: amounts falling due within one year
Group
Charity
Group
Charity
2024
2024
2023
2023
Notes
£
£
£
£
Bank loans
24
84,450
84,450
85,605
85,605
Other taxation and social security
10,654
10,654
9,214
9,878
Trade creditors
23,554
21,873
48,372
44,269
Amounts owed to subsidiary undertakings
-
-
-
2,327
Other creditors
4,769
4,769
15,258
15,258
Accruals and deferred income
34,025
32,975
79,437
78,437
157,452
154,721
237,886
235,774
23
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Bank loans
24
2,367,058
2,443,802
KINGS COMMUNITY CHURCH (SOUTHAMPTON)
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 30 -
24
Loans and overdrafts
2024
2023
£
£
Bank loans
2,451,508
2,529,407
Payable within one year
84,450
85,605
Payable after one year
2,367,058
2,443,802
Amounts included above which fall due after five years:
Payable by instalments
1,060,157
2,034,859

The Church has a long term loan from Triodos Bank NV, which is secured on its freehold land and buildings. The loan is at a variable interest rate of base rate + 2.75% and is repayable on a reducing balance basis. On 9 April 2020 it was agreed that between April 2020 and March 2021 there would be monthly interest only repayments. There would then be interest and capital repayments until August 2039.

 

During the year there were interest payments on this loan of £194,680 (2023: £130,535).

 

25
Retirement benefit schemes
Defined contribution schemes

The charity operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the charity in an independently administered fund.

The charge to profit or loss in respect of defined contribution schemes was £26,709 (2023: £23,548).

26
Operating lease commitments

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:

2024
2023
£
£
Within one year
1,380
-
Between two and five years
4,139
-
5,519
-
KINGS COMMUNITY CHURCH (SOUTHAMPTON)
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 31 -
27
Related party transactions
Remuneration of key management personnel

The remuneration of key management personnel is as follows.

2024
2023
£
£
Aggregate compensation
146,225
154,836

During the year the spouse of a trustee was employed, in operational Church duties. The salary paid for the period in question was £19,842 (2023: £7,487).

 

During the year the Church received £75,872 (2023: £0) as a distribution from KCC Enterprises Ltd, a 100% subsidiary. The Church recharged salary costs of £104,839 (2023: £77,250) to KCC Enterprises Ltd, as well as a contribution towards utility and premises costs of £14,602 (2023: £0).

 

Ian Chiddle is a trustee of Care and Relief for the Young Ltd. During the year the Church made donations to Care and Relief for the Young Ltd of £12,232 (2023: £2,000) and received recharges of £2,705 from them for office facilities provided (2023: £3,018).

28
Cash generated from operations
2024
2023
£
£
Surplus for the year
52,140
273,444
Adjustments for:
Investment income recognised in statement of financial activities
(3,213)
(563)
Fair value gains and losses on investments
-
(297,900)
Depreciation and impairment of tangible fixed assets
160,372
167,186
Movements in working capital:
(Increase) in stocks
(1,807)
-
Decrease/(increase) in debtors
111,888
(75,520)
(Decrease)/increase in creditors
(79,279)
14,033
Cash generated from operations
240,101
80,680
KINGS COMMUNITY CHURCH (SOUTHAMPTON)
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 32 -
29
Restricted funds
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 April 2022
Incoming resources
Resources expended
Transfers
Balance at
1 April 2023
Incoming resources
Resources expended
Transfers
Balance at
31 March 2024
£
£
£
£
£
£
£
£
£
Food Centre Fund
54,644
25,623
(30,019)
-
50,248
27,575
(31,947)
-
45,876
Rebuild Fund
50,250
-
-
-
50,250
-
-
-
50,250
Strengthen Your Stakes Fund
141,359
13,472
(15,000)
(139,831)
-
-
-
-
-
Help Fund
7,393
6,681
(8,046)
-
6,028
1,626
(4,692)
-
2,962
Treasure Trove Fund
9,750
-
(2,825)
-
6,925
-
-
-
6,925
Other Restricted Funds
16,218
40,358
(61,978)
18,762
13,360
31,095
(35,866)
(1,263)
7,326
279,614
86,134
(117,868)
(121,069)
126,811
60,296
(72,505)
(1,263)
113,339

The Food Centre Fund is monies raised for the Food Centre Project

 

The Rebuild Fund is for a number of investment projects and for general purposes.

 

The Strengthen Your Stakes Fund was to cover some specific expenditure budgets in 2022/23 for New Day, Evangelism, International Outreach, Hope Centre refurbishments as well as one or two other initiatives. The balance was for use towards general expenditure in 2022/23 and beyond, and hence this was transferred to unrestricted fund last year.

 

The Help Fund is to provide support to people affected by the Covid-19 pandemic both locally and internationally.

 

The Treasure Trove Fund is for the creation of a sensory room for people with additional needs.

 

Other restricted funds are a large number of small funds, which have been given for specific ministries of the Church. The Church holds sufficient cash balances to enable them to be applied.

KINGS COMMUNITY CHURCH (SOUTHAMPTON)
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 33 -
30
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 April 2022
Resources expended
Transfers
Revaluations, gains and losses
Balance at
1 April 2023
Resources expended
Transfers
Balance at
31 March 2024
£
£
£
£
£
£
£
£
Fixed asset fund
2,637,604
(167,186)
127,642
297,900
2,895,960
(159,319)
76,313
2,812,954
Mortgage fund
-
-
-
-
-
-
15,000
15,000
Sick Pay reserve
-
-
-
-
-
-
17,000
17,000
2,637,604
(167,186)
127,642
297,900
2,895,960
(159,319)
108,313
2,844,954
Charity
Balance at
1 April 2022
Resources expended
Transfers
Revaluations, gains and losses
Balance at
1 April 2023
Resources expended
Transfers
Balance at
31 March 2024
£
£
£
£
£
£
£
£
Fixed asset fund
2,637,604
(167,186)
127,642
297,900
2,895,960
(159,319)
76,313
2,812,954
Mortgage fund
-
-
-
-
-
-
15,000
15,000
Sick Pay reserve
-
-
-
-
-
-
17,000
17,000
2,637,604
(167,186)
127,642
297,900
2,895,960
(159,319)
108,313
2,844,954
KINGS COMMUNITY CHURCH (SOUTHAMPTON)
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
30
Designated funds (Continued)
- 34 -

The Fixed Asset Fund is a designated fund that represents reserves invested in fixed assets and investments and, therefore, not generally available for use. The fund balance also accounts for the balance outstanding on the mortgage, which is charged against the property. The movements in the year reflect the depreciation expense, as well as changes in value.

 

The trustees have also decided to set aside £15,000 towards early payment of the mortgage, as well as £17,000 to cover possible sick pay costs going forward.

KINGS COMMUNITY CHURCH (SOUTHAMPTON)
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 35 -
31
Analysis of net assets between funds
Group
Unrestricted funds
Designated funds
Restricted funds
Total
Unrestricted funds
Designated funds
Restricted funds
Total
2024
2024
2024
2024
2023
2023
2023
2023
£
£
£
£
£
£
£
£
Fund balances are represented by:
Tangible assets
3,159
4,777,858
-
4,781,017
4,212
4,930,368
-
4,934,580
Investment properties
-
495,000
-
495,000
-
495,000
-
495,000
Current assets/(liabilities)
427,486
(60,846)
113,339
479,979
309,815
(85,606)
126,811
351,020
Long term liabilities
-
(2,367,058)
-
(2,367,058)
-
(2,443,802)
-
(2,443,802)
430,645
2,844,954
113,339
3,388,938
314,027
2,895,960
126,811
3,336,798
Charity
Unrestricted funds
Designated funds
Restricted funds
Total
Unrestricted funds
Designated funds
Restricted funds
Total
2024
2024
2024
2024
2023
2023
2023
2023
£
£
£
£
£
£
£
£
Fund balances are represented by:
Tangible assets
-
4,777,858
-
4,777,858
-
4,930,368
-
4,930,368
Investment properties
-
495,000
-
495,000
-
495,000
-
495,000
Investments
-
1,000
-
1,000
-
1,000
-
1,000
Current assets/(liabilities)
342,396
(61,846)
113,339
393,889
232,515
(86,606)
126,811
272,720
Long term liabilities
-
(2,367,058)
-
(2,367,058)
-
(2,443,802)
-
(2,443,802)
342,396
2,844,954
113,339
3,300,689
232,515
2,895,960
126,811
3,255,286
KINGS COMMUNITY CHURCH (SOUTHAMPTON)
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 36 -
32
Subsidiaries

These financial statements are consolidated charity financial statements for the King's Community Church (Southampton) group.

Details of the charity's subsidiaries at 31 March 2024 are as follows:

Name of undertaking
Registered
Nature of business
Class of
% Held
office
shares held
Direct
Indirect
KCC Enterprises Ltd
England
Corporate events and running of a cafe
Ordinary
100.00

The results for KCC Enterprises Ltd have been consolidated into these accounts, with charity-only figures shown for clarity.

 

In the charity-only Balance Sheet, the investment is stated at cost. The registered office of KCC Enterprises is the same as the parent. Its company number is 7992952.

 

The accounts for KCC Enterprises Ltd show the following information at 31 March 2024 and for the year then ended:

 

 

£

Total assets

109,362

Total liabilities

(20,113)

Total funds

89,249

 

 

Total turnover

295,942

Total expenditure

(213,334)

Profit/(Loss) for the year)

82,608

 

33
Analysis of changes in net (debt)/funds
At 1 April 2023
Cash flows
At 31 March 2024
£
£
£
Cash at bank and in hand
362,821
158,606
521,427
Loans falling due within one year
(85,605)
1,155
(84,450)
Loans falling due after more than one year
(2,443,802)
76,744
(2,367,058)
(2,166,586)
236,505
(1,930,081)
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