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Charity Registration No. 1072196

Company Registration No. 03642766 tEngtand and Wales)

FREEDOM-BATH

ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2019

CaladineChartered Certified Accountants

FREEDOM-BATH

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees Mr A M A de ThierryMr J M NeedhamRev R White

Mr S Matthew

Secretary

Charity number

Company number

Principal address

Mrs K R Ottley

1072196

03642766

Freedom HouseLower Bristol RoadBathBA2 1EP

Auditor Caladine Limited

Chantry House22 Upperton RoadEastbourneEast SussexBN21 1BF

Bankers HSBC45 Milsom StreetBathBA1 1DU

Stewardship Services (UKET) Limited1 Lamb's PassageLondon

Ecty 8AB

FREEDOM-BATH

CONTENTS

Page

Trustees' report 1-6

Independent auditor's report 7-8

Statement of financial activities

Statement of financial position 10

Statement of cash flows

Notes to the financial statements 12-26

FREEDOM-BATH

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT)


The trustees present their report and accounts for the year ended 31 August 2019.

The accounts have been prepared in accordance with the accounting policies set out in note 1 to the accountsand 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 charitiespreparing their accounts in accordance with the Financial Reporting Standard applicable in the UK andRepublic of Ireland (FRS 102)" (as amended for accounting periods commencing from 1 January 2016)

Objectives and activitiesAs Trustees we seek to ensure as a church we have considered the Commissions guidance on Public Benefitwhen planning our activities. Specifically with respect to the guidance on the advancement of religion. Withthis in mind the charities objects and principal activities are:

- The furtherance of religious education.- The advancement of the Christian faith including missionary activities in the United Kingdom and overseas

and also including but not limited to the planning of new churches and organisations of congregations.- The relief of the poor and needy.- The relief of the sick and elderly.—Such other charitable objects for the benefit of such other charitable bodies and institutions as the committee

shall in their absolute discretion see fit.

These objectives enable us to provide public benefit in vanous ways through the various activities of thecharity.

Events are hosted and attended throughout the year to further the charities objects, including Sundayservices, midweek meetings, social events and the Church Weekend Away in which the majority of the churchgo away to be strengthened and encouraged in their faith. These events are strategic in enabling people taconnect with each other and with Jesus.

Missions are those activities where by the charity seeks to reach out to others helping to advance theChristian faith and or relieve poverty. A significant amount of our missions activities are through the provisionof grants to individuals and charities who are undertaking work that contribute toward the objects of the charityas listed above. You can see a list of those we support in note 9 to the accounts. As well as giving to otherswe also run aur awn activities which also serve ta reach out to the local and international community. Thesevaried activities act to see the relief of poverty and the advancement of the Christian faith. Many of our smallgroups in church get involved in helping the communities they live in practical ways. With this in mind we workwith social services to help some of the people most in need in our cities.

Activities seek to care for, support and help people to move on in their lives both practically and spiritually.These activities are carried out to bring relief to the poor and needy and the sick and elderly, those requiringemotional and spiritual support. The provision of pastoral support has been continued throughout the year bythe Senior Pastor, assisted by members of the pastoral team. This has enabled us to help both people insideand outside of the church as they seek to move forward in their lives.

The core of the church's activities are found in its meetings, which are usually held on Sundays and manymidweek evenings. These meetings are specifically aimed at teaching and growing people in their faith.Enabling them to help and encourage others in their daily hfe with Jesus and each other.

Public benefitThe trustees have paid due regard to guidance issued by the Charity Commission in deciding what activitiesthe charity should undertake.

Grant making policyMission is the generic term we give to gifts that we make to other organisations and individuals that furthersour charitable objects. When gifts are given the following cnteria are always looked at before the gift is given:

—When giving to the organisation, the trustees decide which organisations and the amount to be given.-As stated in the Trustees report, we aim to give at least 20% of our unrestricted income away in mission gifts

and grants.

FREEDOM-BATH

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)

FOR THE YEAR ENDED 31 AUGUST2019

Achievements and Performance

Highlights of the year included:

SEPTEMBER 2018Women's BreakfastFresherts EventsHeart and SoulBreaking GroundCanoe Trip

OCTOBER 2018Superhero PartyHillsong Open HouseHillsong Men's ConferenceAges & Stages SundayFreedom Family MeetingMonth of prayer and fasting

NOVEMBER 2018Spheres SundayHeart and SoulCreative Community Launched

DECEMBER 2018Carol ServiceNativity ServiceChristmas Give AwayTeam PartiesFreedom on IceRocketer Christmas ChoirHillsong Carol Service

JANUARY 2019Men's BreakfastHeart and SoulCompassion SundayBaptisms

FEBRUARY 2019Leadership TrainingHillsong EncounterYouth night awayKids' ConferenceBig Questions on Attachment with

Betsy

MARCH 2019Heart and SoulWe celebrated our 18e Birthday!Rise and BuildProphesy WorkshopMothers' Day12 day fast for the building of the new

auditorium

APRIL 2019EasterTeam Party Week

IIII AY 2019Colour ConferenceWe got the keys to our new buildingiHeart and SoulMen's Camping Trip

JUNE 2019First Sunday in our new buildingAuditorium ToursBuilding Opening, Dedication Service

and celebrationTRC Conference hasted in Freedom

AuditoriumFathers' Dey

JULY 2019We hosted lunch for local Pastor's in

the AuditoriumBetsy's book 'The Simple Guide to

Attachment Difficulties in Children'was published

Summer of MoviesBaptismsAuthentic Youth with Guvna BWomen's summer drinksHillsong Conference

AUGUST 2019Summer of MoviesSummer BBQInternational Food SundaySoul Survivor

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CORE NUMBERS

Address Book Numbers

Life Groups and Espressos

People attending small groups

People serving on teams

EVENT NUMBERS

Youth Weekend Away

Kids Conference

Colour Conference

Soul Survivor

Women's Breakfast

Hillsong Men's Conference

Building Opening

Carol Services

FRUITFULNESS NUMBERS

Number of Salvations

Compassions kids Sponsored

People staying in Apartment

Present Given Away

TRC Hours of Service Provision

Betsy Trained

YEAR IN REVIEW 2019

537

25

303

136

21

39

43

21 youth, 6 team

47

38

394

395 and 262

117

84

7 visits, 14 people

200+

2,885

3800 professionals, 46 events, 10 different areasacross the UK and overseas and providedconsultancy to organisations working in UK, KenyaBrazil, Honduras, Thailand, Cambodia, South AfricUS, Bulgaria, Denmark, Ukraine and Iraq.

Freedom Auditorium

In September 2018, we broke ground as the building of our new auditorium began. We prayed over the land andburied a time-capsule that included prayers for future generations, prayers and pictures from our kids and youthand a bible. This was the beginning of 9 months of building works, during which time there were bibles buried intothe foundations of the building and a lot of prayer. We loved seeing the building take shape and, finally, in June2019 we had our official building opening, including dedicating the building to Jesus and to making His namefamous, a ribbon cutting by Betsy and her family and a party. Betsy had a vision for a purpose built church buildingin the city when she first moved to Bath to set up the church over 20 years ago; after completing the design, gettingplanning permission, raising funds, now opening Freedom Auditorium is a highlight of the year.

FREEDOM-BATH



Freedom Auditorium includes a 500 seat auditorium, cafe space and mezzanine room and is acoustically treatedwith a full sound system, stage, 5m x 3m LED screen and lighting rig. The Auditorium is now busy with Sundayservices, community events, youth events, conferencing and much more. In 2020, the building won the LABCBANES Building Quality Award in the 2019 public and commercial category.

Future Plans

Since the end of the financial year we have continued our activities, with some highlights including:

SEPTEMBER 2019Leaders' and Team DayWomen's BreakfastFreshers EventsBetsy trained A21 global teams in GreeceNew Outreach Projects launched

OCTOBER 2019Heart and SoulA21 Walk for Freedom in BathFresher's LunchesGlow PartyAlpha Course started

NOVEMBER 2019Cluster Bonfire Night eventsOlder youth trip to Hillsong LondonAuthentic Youth bonfire night eventBetsy and Jonah went to Creative

Conference at Mosaic Church, LAThank you banquet for front line

professionalsFreedom on IceBaptisms

DECEMBER 2019Christmas in Freedom Auditorium2 Carol ServicesNativity ServiceChristingleGuest Speaker —Simon GuillebaudHillsong CarolsAuthentic Youth Christmas Party

We look forward to 2020 being another busy and fruitful year. At the time of reporting, Freedom Centre UK isresponding to the Coronavirus Pandemic and the resulting restrictions in movement within the UK. The churchhas moved its Sunday services, midweek groups and children's and youth activities onto online platforms. Thechurch is also hosting online prayer meetings 3 times a day to pray together and looking for new ways to supportour local communities. We look forward to our next thank you banquet for front line professionals when we canthank them and their families for all they are doing.

FREEDOM-BATH


FOR THE YEAR ENDED 31AUGUST 2019

Financial reviewThere was a net surplus on general funds for the year of F22,544 before transfers.

Reserves PolicyIt was decided by the trustees that the Church should hold in savings in unrestricted funds the equivalent of atleast one month's staff salaries and outgoings in order to cover any shortfall in the giving to the charity.Therefore the charity seeks to hold a minimum of 920,000 in reserve. In view of the building developmentand additional financial commitments taken on, the reserve policy is under review.

Funding sourcesFunding is generated predominantly through tithes and offerings given to the church from its members andother organisations. As such a significant source of income is the Gift Aid claimed on peoples gifts. In additionthe car park at Freedom House is let to a Trust who use it for their employees during the week and parts ofFreedom House are let to another registered charity to carry out their work supporting the local community.

Risk managementThe trustees have assessed the major nsks to which the charity is exposed, and are satisfied that systems arein place to mitigate exposure to the major risks.

Structure, governance and managementThe trustees, who are also the directors for the purpose of company law, and who served during the yearwere.

Mr A M A de Thierry

Mr J M NeedhamRev R White

Mr S Matthew

Mr M BanhamMr P Banger

(Resigned 14 February 2019)(Appointed 12 December 2018 and resigned 22 May 2019)

The Chairman of Trustees appoints trustees with relevant business and/or church experience to serve astrustees for a period of normally at least 2 years. Trustees are active members or supporters of Freedom-Bath.

Most trustees are already familiar with the activities undertaken by the charity as commonly active members ofor long term supporters of the church are selected for the role. Copies of the Memorandum and Articles ofAssociation are made available and an overview of recent activities, obligations and plans are given to themat a meeting with the Chairman of the Trustees.

The charity is led by the senior pastor and the leadership team. The church is part of some wider churchnetworks such as the Hillsong Network and Wave Church Network.

The board meet four or five times a year to administer the charity. They are not a board of elders and have nopastoral function, their role is to oversee the legal and finanaal aspects (governance) of the charity and toensure compliance with statutory reporting requirements and that risks to which the charity is exposed arereviewed, minimised and managed accordingly. Mr A de Thierry will present those plans which have afinancial cost to the trustees who will advise and make recommendations on the best method ofimplementation or compliance.

Related partiesFreedom Bath + Bristol Developments Limited is a limited company which was engaged by the charity to carryout the design and build contract for the erection of the new auditorium. The charity is also related to TraumaRecovery Centre, a charity of which Mrs de Thierry (wife of Mr de Thierry) was the founder and is a trustee,and which it supports financially.

FREEDOM-BATH

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)FOR THE YEAR ENDED Sy ADUST any g

Statement of trustees' responsibilitiesThe trustees, who are also the directors of Freedom-Bath for the purpose of company law, are responsible forpreparing the Trustees' Report and the financial statements in accordance with applicable law snd UnitedKingdom Accounting Standards (United Kingdom GenerallvAccepted Accountinc Practice).

Company Law requires the trustees to prepare tinanoiat statements for each financial year which give e trueand fair view of the state of atfairs of the charity and of the incoming resoumes and application of resources,induding 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 w lethal applicable IJK AIAAJwliinu Stendsids iisve been foiiowed, subject to any matenai departuresdisdosed and explained in the financial statements; and

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

The trustees are responsible for keeping adequate accounting records that disclose with reasonable accurscvat any lime the financial position of the charity arid enable them to ensure that the financial statements complywith Ihe Companies Acl 2006. They are also responsibfe for safeguaiding the assets of the ebs rky and hencefor taking reasonable steps for the prevention and detection of freud and other kregutartfies.

AuditorCaladine Limited were appointed as the charitable company's auditors during the year.

Disclosure of information to auditorEach of the trustees has confirmed that there is no information of which they are aware which is relevant tothe audit, but of which the auditor is unaware. They have further confirmed that they have taken appropriatesteps to identify such relevant information and to establish that the auditors are aware of such information.

e trustees' r orl was approved by the Board of Trustees.

ttfr A ld A de ThienyI

irustee iI 9 L. ADated: ....

FREEDOM-BATH

INDEPENDENT AUDITOR'S REPORT

TO THE MEMBERS OF FREEDOM-BATH

OpinionWe have audited the financial statements of Freedom-Bath (the 'charity') for the year ended 31 August 2019which comprise the statement of financial activities, the statement of financial position, the statement of cashflows and the notes to the financial statements, including a summary of significant accounting policies. Thefinancial reporting framework that has been applied in their preparation is applicable law and United KingdomAccounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicablein 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's affairs as at 31 August 2019 and of itsincoming resources and application of resources, for the year then ended,have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice;andhave been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinionWe conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicablelaw. Our responsibilities under those standards are further described in the Auditor's responsibilities for the auditof the financial statements section of our report. We are independent of the charity in accordance with the ethicalrequirements that are relevant to our audit of the financial statements in the UK, including the FRC's EthicalStandard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. Webelieve that the audit evidence we have obtained is sutficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concernWe have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us toreport to you where:

the trustees' use of the going concern basis of accounting in the preparation of the financial statements isnot appropriate, orthe trustees have not disclosed in the financial statements any identified material uncertainties that maycast significant doubt about the charity's ability to continue to adopt the going concern basis of accountingfor a period of at least twelve months from the date when the financial statements are authorised for issue.

Other informationThe trustees are responsible for the other information. The other information compnses the information includedin the annual report, other than the financial statements and our auditor's report thereon. Our opinion on thefinancial statements does not cover the other information and, except to the extent otherwise explicitly stated inour 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, indoing so, consider whether the other information is materially inconsistent with the financial statements or ourknowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such materialinconsistencies or apparent material misstatements, we are required to determine whether there is a materialmisstatement in the financial statements or a material misstatement of the other information. If, based on thework we have performed, we conclude that there is a material misstatement of this other information, we arerequired to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006In our opinion, based on the work undertaken in the course of our audit:

the information given in the trustees' Report, which includes the directors' report prepared for the purposesof company law, for the financial year for which the financial statements are prepared is consistent with thefinancial statements; andthe directors' report included within the trustees' report has been prepared in accordance with applicablelegal requirements.

FREEDOM-BATH

INDEPENDENT AUDITOR'S REPORT (CONTINUED)

TO THE MEMBERS OF FREEDOM-BATH

Matters on which we are required to report by exceptionIn the light of the knowledge and understanding of the charity and its environment obtained in the course of theaudit, 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 2006requires 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 receivedfrom branches not visited by us; orthe financial statements are not in agreement with the accounting records and returns; orcertain disclosures of trustees' remuneration specified by law are not made; orwe have not received all the information and explanations we require for our audit; orthe trustees were not entitled to prepare the financial statements in accordance with the small companiesregime and take advantage of the small companies' exemptions in preparing the trustees' report and fromthe requirement to prepare a strategic report.

Responsibilities of trusteesAs explained more fully in the statement of trustees' responsibilities, the trustees, who are also the directors ofthe charity for the purpose of company law, are responsible for the preparation of the financial statements andfor being satisfied that they give a true and fair view, and for such internal control as the trustees determine isnecessary to enable the preparation of financial statements that are free from material misstatement, whetherdue to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the charity's ability to continueas a going concern, disclosing, as applicable, matters related to going concern and using the going concernbasis 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 statementsOur objectives are to obtain reasonable assurance about whether the financial statements as a whole are freefrom material misstatement, whether due to fraud or error, and to issue an auditor's report that includes ouropinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted inaccordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arisefrom fraud or error and are considered material if, individually or in the aggregate, they could reasonably beexpected to influence the economic decisions of users taken on the basis of these financial statements.

A further description of our responsibilities for the audit of the financial statements is located on the FinancialReporting Council's website at: http: //www. frc.org. uk/auditorsresponsibilities. This description forms part of ourauditor's report.

John Richard Caladine FCCA CTA FCIE (Senior Statutory Auditor)for and on behalf of Caladine Limited

Chartered Certified AccountantsStatutory Auditor Chantry House

22 Upperton RoadEastbourneEast SussexBN21 1BF

FREEDOM-BATH

STATEMENT OF FINANCIAL ACTIVITIESINCLUDING INCOME AND EXPENDITURE ACCOUNT


Igggm~omiVoluntary incomeCharitable activitiesOther trading activitiesInvestments

Other income

Unrestrictedfunds2019

Notes f

457,91722,223

3,5651,243

501

Restrictedfunds2019

f

429,272

Total

20198

887, 18922,223

3,5651,243

501

Unrestricted

funds2018

9

496,38826, 16822,230

847

Restrictedfunds

2018f

1 92,592

Total

2018f

688,98026,16822,230

847

Total income 485,449 429,272 914,721 545,633 192,592 738,225

Etgtgg~rgdttt i

Charitable activities 462,905 209,878 672,783 493,151 143,526 636,677

Net incomingresources beforetransfers 22,544 219,394 241,938 52,482 49,066 101,548

Gross transfersbetween funds 19 647, 159 (647,159)

Net income1(expenditure)for the year/Net movement in funds 669,703 (427,765) 241,938 52,482 49,066 101,548

Fund balances at 1September 2018 1,294,333 427, 765 1,722,098 1,241,851 378,699 1,620,550

Fund balances at 31August 2019 1,964,036 1,964,036 1,294,333 427, 765 1,722,098

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 accountunder the Companies Act 2006.

FREEDOM-BATH

STATEMENT OF FINANCIAL POSITION

AS AT31AUGUST2019

Notes2019

62018

f.

Fixed assetsIntangible assetsProperty, plant and equipment

1314

8894,254, 169

1,3341,899,060

4,255,058 1,900,394

Current assetsTrade and other receivablesCash at bank end in hand

15 11,51230,120

5,823811,384

4'l, 632 817,207

Current liabigtiesBorrowingsTaxation and social securityOther payebles

52,8594,381

354,995

412,235

56,0244,723

23,226

83,973

Net current (gabgities)/assets

Total assets less current liabilities

(370,603)

3,884,455

733,234

2,633,628

rtonwurrent liabilitiesBorrowings 16 1,920,419 911,530

(1,920,419) —(911,530)

Net assets 1,964 036 t 7c'7 noR

Income fundsRestricted fundsUnrestricted funds

19

1,964,036

1,984,036

427,7651,294,333

1,722,098

The financial ments were approved by the Trustees on. !5(.D.CGA OLD./t .n

....~&AE.......MrAMAde ThierryTrustee

Mr J M NeedhamTrustee

Company Registration No. 03642766

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FREEDOM-BATH

STATEMENT OF CASH FLOWS


Notes2019

62018

9

Cash flows from operating activitiesCash generated from operations 23 588,457 163,929

Investing activitiesPurchase of property, plant and equipmentProceeds on disposal of property, plantand equipmentIncome from investments

(2,394,295)

17,6071,243

(34,235)

1,103847

Net cash used in investing activities

Financing activitiesProceeds of new bank loansRepayment of bank loans

1,995,000(989,276)

(2,375,445)

(54,807)

(32,285)

Net cash generated from/(used in)financing activities 1,005,724 (54,807)

Net (decrease)/increase in cash and cashequivalents

Cash and cash equivalents at beginning of year

Cash and cash equivalents at end of year

(781,264)

811,384

30,120

76,837

734,547

811,384

—11

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NOTES TO THE FINANCIAL STATEMENTS


1 Accounting policies

Company informationFreedom-Bath is a chantable company limited by guarantee incorporated in England and Wales. Theregistered office is Freedom House, Lower Bristol, Bath, BA2 1EP.

1.1 Accounting conventionThe accounts have been prepared in accordance with the charity's Memorandum and Articles ofAssociation, the Companies Act 2006 and "Accounting and Reporting by Charities: Statement ofRecommended Practice applicable to charities preparing their accounts in accordance with the FinancialReporting Standard applicable in the UK and Republic of Ireland (FRS 102)" (as amended for accountingperiods commencing from 1 January 2016). 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. Monetaryamounts in these financial statements are rounded to the nearest E.

The accounts have been prepared under the historical cost convention. The principal accounting policiesadopted are set out below.

1.2 Going concernAt the time of approving the financial statements, the trustees have a reasonable expectation that thesupport of the Church's bankers and Church congregation will ensure the charity has adequate resourcesto continue in operational existence for the foreseeable future. Thus the trustees continue to adopt thegoing concern basis of accounting in preparing the financial statements.

1.3 Charitable fundsUnrestricted funds are available for use at the discretion of the trustees in furtherance of their charitableobjectives unless the funds have been designated for other purposes.

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

1.4 IncomeIncome is recognised when the charity is legally entitled to it after any performance conditions have beenmet, the amounts can be measured reliably, and it is probable that income will be received.

Cash donations are recognised on receipt. Other donations are recogmsed once the charity has beennotified of the donation, unless performance conditions require deferral of the amount. Income taxrecoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the timeof the donation.

Voluntary income is received by way of donations and gifts. It is shown in full in the Statement of FinancialActivities when received.

In July 2019 the charity received the sum of 6180,000 from a local housing association as an advancepayment for use of the charity's car park. This amount is shown as deferred income within other payableswith the income recognised over the 6 year lease period to July 2025.

-12-

FREEDOM-BATH

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)


1 Accounting policies (Continued)

1.5 ExpenditureExpenditure is recognised once there is a legal or constructive obligation to make a payment to a thirdparty, it is probable that settlement will be required and the amount of the obligation can be measuredreliably.

Expenditure is classified under the following activity headings:

Expenditure on charitable activities includes the associated costs of the advancement of theChristian faith, religious education, relief of the poor and needy, relief of the sick and elderly andother activities undertaken to further the purposes of the charity and their associated supportcosts.

~ Other expenditure represents those items not falling into any other heading.

Irrecoverable VAT is charged as a cost against the activity for which the expenditure was incurred.

Support costs are those functions that assist the work of the charity but do not directly undertake charitableactivities. Support costs include building repairs and maintenance, rates and utilities, travel, office costsand governance costs. Support costs have been allocated wholly to the charitable activity expenditure.

1.6 Intangible fixed assets other than goodwillIntangible assets acquired separately from a charity are recognised at cost and are subsequentlymeasured at cost less accumulated amortisation and accumulated impairment losses. Intangible assetsacquired on business combinations are recognised separately from goodwill at the acquisition date if thefair value can be measured reliably.

These costs relate to the costs of Trademarks for Freedom Bath & Bristol, Freedom Arts College andFreedom Churches.

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

Trademarks 10% on a straight line basis

1.7 Property, plant and equipmentProperty, plant and equipment are initially measured at cost and subsequently measured at cost orvaluation, net of depreciation and any impairment losses.

Tangible fixed assets are stated at cost or, if donated, the value at date of receipt, less depreciation.

Depreciation is provided at rates calculated to write off the cost less estimated residual value of each assetover its expected useful life, as follows:

Freehold propertyFixtures, fittings and equipmentMotor vehicle

2% on a straight line basis25% on a reducing balance basis25% on a reducing balance basis

The gain or loss arising on the disposal of an asset is determined as the difference between the saleproceeds and the carrying value of the asset, and is recognised in net income/(expenditure) for the year.

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Accounting policies (Continued)

Fixed assets that cost over E500 are capitalised in the accounts.

Now that the new auditorium has been built, the building element of freehold land and buildings will bereviewed and depreaated at 2% per anum with effect from 1st September 2019.

1.8 Impairment of non-current assetsAt each reporting end date, the charity reviews the carrying amounts of its tangible and intangible assets todetermine whether there is any indication that those assets have suffered an impairment loss. If any suchindication exists, the recoverable amount of the asset is estimated in order to determine the extent of theimpairment loss (if any).

Intangible assets with indefinite useful lives and intangible assets not yet available for use are tested forimpairment annually, and whenever there is an indication that the asset may be impaired.

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

1.10 Financial instrumentsThe charity has elected to apply the provisions of Section 11 'Basic Financial Instruments' of FRS 102 to allof its financial instruments.

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

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

Basic financial assetsBasic financial assets, which include trade and other receivables and cash and bank balances, are initiallymeasured at transaction price including transaction costs and are subsequently carried at amortised costusing the effective interest method unless the arrangement constitutes a financing transaction, where thetransaction 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 liabilitiesBasic financial liabilities, including trade and other payables and bank loans are initially recognised attransaction price unless the arrangement constitutes a financing transaction, where the debt instrument ismeasured at the present value of the future receipts discounted at a market rate of interest. Financialliabilities classified as payable within one year are not amortised.

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

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

Derecognition ot financial liabilitiesFinancial liabilities are derecognised when the charity's contractual obligations expire or are discharged orcancelled.

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1 Accounting policies (Continued)

1.11 Employee benefitsThe cost of any unused holiday entitlement is recognised in the period in which the employee's servicesare received.

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

1.12 Retirement benefitsPayments to defined contributian retirement benefit schemes are charged as an expense as they fall due.

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 apparentfram other sources. The estimates and associated assumptions are based on historical experience andother 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 accountingestimates are recognised in the period in which the estimate is revised where the revision affects only thatperiod, or in the period of the revision and future periods where the revision affects both current and futureperiods.

3 Voluntary income

Unrestrictedfunds

Restrictedfunds

Total Unrestricted

funds

Restrictedfunds

Total

2019f

2019f

2019f

2018f

2018f

2018f

Donations and giftsGrants receivable

457,917 364,27265,000

822, 18965,000

496,388 192,592 688,980

457,917 429,272 887, 189 496,388 192,592 688,980

Donations and giftsGift aid giving

Other regular gifts

Tax refunds

237,500104,221116,196

191,725172,547

429,225276,768116,196

208,617212,891

74,880

94,703 303,32097,889 310,780

74,880

457,917 364,272 822, 189 496,388 192,592 688,980

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4 Charitable activities

2019f

2018f

Sales of album and other Christian resourcesCafeIncome from training collegesYouth work

Charitable rental income

1,089997

93719,200

432

2,355981

22,400

22,223 26, 168

5 Other trading activities

Unrestricted Unrestrictedfunds funds

2019f

2018f

Rental income 3,565 22,230

6 Investments

Unrestricted Unrestricted

funds funds

Interest receivable

2019f

1,243

2018f

847

7 Other income

2019 2018

Net (loss)/gain on disposals 501

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8 Charitable activities

20198

20185

Staff costsVisitors accommodation and costsPastoral expensesSunday venue hire

Sunday catering and suppliesYouth workChildren's work

Events - Church weekend awayEvents - OtherTraining and resourcesResources for resale and album costs

177,622803

7,23186,38013,13310,608

5,26360

6,30610,068

310

190,586253

7,21793,06013,1657,7395,777

12,7585,963

22,4231,335

317,784 360,276

Grant funding of activities (see note 9)

Share of support costs (see note 10)Share of governance costs (see note 10)

109,415

173,66071,924

95,482

132,85348,066

672,783 636,677

Analysis by fundUnrestricted fundsRestdcted funds

462,905 493,151209,878 143,526

672,783 636,677

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9 Grants payable

20196

2018f

Community Action (The Cupboard)Gilead FoundationHillsong

Hope for JusticeSozo Ministries InternationalTrauma Recovery CentreRebuild the PastorsOther

2,4243,0006,2051,2001,200

69,97210,66712,377

2,8563,0007,4401,2001,200

40,60611,41016,619

Grants to individuals

107,045

2,370

109,415

84,331

11,1 51

95,482

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10 Support costsSupport Governance

costs costsf 5

Total2019

6

Support Governancecosts costs

f

Total2018

Staff costsDepreciationMeetings and stalfwelfare

Garage rent and storageBuilding repairs andmaintenanceChurch and officeequipmentSoftware, graphics andIT

Printing, postage andstationeryTelephoneOther office expenditureUtilities

InsuranceTravel andaccomodationLicenses and permitsRatesBank chargesMinibus

Dues and subscriptionsLoan interestLegal and professionalAudit fee (2018:Independentexamination)Accountancy

22,523

7,2234,522

20,023

14,896

13,922

3,5464,7607,242

15,6725,591

2,230652

5,4803,7331,935

68739,023

31,666

34,308

3,8502, 100

7,2234, 522

4,3234,825

2p p23 21,871

14,896

1 3,922

3,5464,7607,242

15,6725,591

2,230652

5,4803,7331,935

68739,02334,308

6,858

5,335

5,4704,0558,6268,2337,244

4,415652

5,8311,7291,509

95519,718

3,8502, 100

31,66622,523 21,204

27, 524

17,592

1,0001,950

27,52421,204

4,3234,825

21,871

6,858

5,335

5,4704,0558,6268,2337,244

4,415652

5,8311,7291,509

95519,71817,592

1,0001,950

173,660 71,924 245,564 132,853 48,066 180,919

~Iggg~ew enCharitable activities 173,660 71,924 245,584 132,853 48,066 180,919

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FOR THE YEAR ENDED 3$ AUGUST 2019

11 Trustees

Andrew de Thierry received remuneration of f44, 000 (2018: f44, 000) and pension contributions of f1,760in his role as Pastor. This payment is permitted within the constitution of the charitable company.

Travel and other expenses were paid on to Mr A de Thierry in support of the ministry work amounting tof1,617 (2018: f3,541) during the year. Expense reimbursements of nil (2018: f1,583) were due to Mr A deThierry at 31 August 2019.

Travel costs paid to other trustees to attend trustee meeting amounted to f223 (2018: nil)

Aggregate donations to the charity during the year from trustees and related parties were f43,644 (2018:f99,260).

No significant other payments were made to trustees during this financial period. No material transactiontook place between the organisation and a trustee or any person connected with them other than asdisclosed in note 22.

12 Employees

Number of employeesThe average monthly number of full and part time employees during the year was:

2019Number

2018Number

Activities in furtherance of organisations objectsManagement and administration

112

101

13

Employment costs 2019f

2018f

Wages and salariesSocial security costsOther pension costs

191,74912,0935,446

198,51114,0115,588

299,288 218,110

A portion of the salary cost of two employees totalling 611,465 (2018: f14,097) is for the Church's missionwork. The wages are considered part of the grant allocation under the Rebuilding the Pastors and TraumaRecovery Centre categories and are therefore not included in the above figures.

The church is also wonderfully served by many unpaid volunteers acting in a vadiety of ways.

There were no employees whose annual remuneration was f60,000 or more.

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13 Intangible fixed assets

CostAt 1 September 2018 and 31 August 2019

Trademarks8

4,442

Amortisation and impairmentAt 1 September 2018Amortisation charged for the year

At 31 August 2019

3,109444

3,553

Carrying amountAt 31 August 2019

At 31 August 201 8

889

1,334

14 Property, plant and equipmentFreehold Fixtures,property fittings and

equipment6 8

Motorvehicle

Total

CostAt 1 September 2018Additions

Disposals

1,861,7112,353,383

179,14940,912(3,889)

41,054

(28,554)

2,081,9142,394,295

(32,443)

At 31 August 2019 4,215,094 216,172 12,500 4,443, 766

Depreciation and impairmentAt 1 September 2018Depreciation charged in the yearEliminated in respect of disposals

32,5763,637

126,071 24,20918,342 99(3,232) (12,105)

182,85622,078

(15,337)

At 31 August 2019 36,213 141,181 12,203 189,597

Carrying amountAt 31 August 2019 4,178,881 74,991 297 4,254, 169

At 31 August 2018 1,829,137 53,078 16,845 1,899,060

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15 Trade and other receivables

Amounts falling due within one year:2019

82018

8

GiR aid

Other debtorsPrepayments and accrued income

8,883739

1,890

2,222270

3,331

11,512 5,823

16 Borrowings

2019f

20188

Bankloans 1,973,278 967,554

Payable within one yearPayable after one year

52,8591,920,419

56,024911,530

Amounts included above which fall due aRer five years:

Payable by instalments 1,455,958 676,382

The original property loan from Unity Trust Bank Pic was secured under charges created 1 December2008.

In 2019 the charity took out a new property loan from Stewardship Services (UKET) Ltd totalling81,995,000, This enabled the chadity to repay the loan from Unity Trust Bank and provided additional fundsfor the construction of the new auditorium. The loan is charged at 3.25% (variable at one months notice)and repayable over 15 years.

The loan from Stewardship is secured on Freedom House, Lower Bristol Road, Bath, BA2 1EP and landlying to the west of Technology House, Lower Bristol Road, Bath, BA2 1EP, as the same is registered atthe Land Registry under title number AV26412 and AV93184

17 Current liabilities

Notes2019

f2018

6

BankloansOther taxation and social securityTrade payablesAccruals and deferred income

16 52,8594,381

168,505186,490

56,0244,723

11,37111,855

412,235 83,973

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18 Retirement benefit schemes

Defined contribution schemesThe charity operates an auto-enrolment defined contribution pension scheme for all qualifying employees.The assets of the scheme are held separately from those of the charity in an independently administeredfund.

The charge to profit or loss in respect of defined contribution schemes was 85,446 (2018 - 65,588).

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FREEDOM-BATH



20 Analysis of net assets between funds

Unrestricted Restrictedfunds funds2019 2019

6 6Fund balances are represented by:

Total Unrestrictedfunds

2019 2018f f

Restnctedfunds

20186

Total

2018f

Intangible fixed assetsProperty, plant andequipmentCurrent assets/(liabilities)

Long term liabilities

889

4,254, 169

(370,603)(1,920,419)

889 1,334

4,254, 169 1,899,060

(370,603) 305,469 427,765(1,920,419) (911,530)

1,334

1,899,060

733,234(911,530)

1,964,036 1,964,036 1,294,333 427,765 1,722, 098

21 Events after the reporting date

On the 24 October 2019 the charity received an offer, which it subsequently accepted, of a further advancefrom Stewardship of f181,000 in respect to their mortgage which is secured on Freedom House, LowerBristol Road, Bath, BA2 1EP. This additional finance is to settle outstanding liabilities related to theconstruction of Freedom Auditorium and pay professional and legal fees.

22 Related party transactions

Remuneration of key management personnelThe remuneration of key management personnel is as follows.

2019 2018

Aggregate compensation 49,665 49,665

A salary was paid to Mrs B de Thierry (wife of Mr A de Thierry, a trustee) as pastor of f49,665 (2018.f49,665). Mrs B de Thierry also received pension contributions of f1,987 and benefits in kind worth f633.

A salary was paid to Mrs H Needham (wife of Mr J Needham, a trustee) of f3,785 (2018: f5,522).

A salary was paid to Mr J de Thierry (son of Mr A de Thierry, a trustee) of 6763 (2018: nil)

Freedom-Bath paid f1,450 for volunteer training provided by Betsy de Thierry Limited (Mr A de Thierry, atrustee, and his wife Mrs B de Thierry are directors of this company).

Freedom-Bath supports the work of the Trauma Recovery Centre (TRC), a separate charity with Mrs Betsyde Thierry acting as a trustee. Freedom-Bath granted TRC a 5 year lease in 2014 to use premises atFreedom House. Freedom-Bath provided support to TRC of f69,972 (2018: f40,606). Included within thisamount of support is 619,200 as a gift-in-kind in lieu of the rent due (2018: f6,400) this is also recognisedas charitable rental income in the accounts.

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23 Cash generated from operations 2019 2018

Surplus for the year 241,938 101,548

Adjustments for:Investment income recognised in statement of financial activitiesGain on disposal of property, plant and equipmentDepreciation and impairment of property, plant and equipment

(1,243)(501)

22,523

(847)

21,204

Movements in working capital:(Increase)/decrease in trade and other receivablesIncrease in trade and other payables

Cash generated from operations

(5,687)331,427

588,457

29,95812,066

163,929

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