Reglstered number: 02175712 Charity number: 1001361 MORRIS CERULLO WORLD EVANGELISM (A Company LimSted by Guarantee) TRUSTEES. REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023
MORRIS CERULLO WORLD EVANGELISM {A Company Llmited by Guarantee) CONTENTS Page Reference and Administratlve Details of the Company, Ils Trustees and Advisers Trustees. Report Independent Auditor'5 Report on the Financial Statements Statement of Financial Activities 9-12 13 Balance Sheet 14-15 statement of Cash Flows 16 Notes to the Financial Statements 17-30
MORRIS CERULLO WORLD EVANGELISM (A Company Limited by Guarantee) REFERENCE AND ADMINISTRATIVE DETAILS OF THE COMPANY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 DECEMBER 2023 Trustees David Cerullo, President Lynn Hodge, Chair Rev. Greg Mauro, Deputy Chair Andre Taylor Peter Tod Julian Richards Verona Powell Andreas Yiangou Company registered number 02175712 Charity registered number 1001361 Registered office The Lodge The Green Houghton Hall Houghton Regis LU5 5DY Chief executlve officer Julian Ri¢hard5 (European Director) Independent auditor Hillier Hopkins LLP Chartered Accountants Statutory Auditor Radius House 51 Clarendon Road Watford Herts WD17 1HP Bankers HSBC PLC 63 George Street Luton LU12AR Senior Management Team Oliver Palmer (UK Office Manager) Christine McKinney (Partner Services Manager) Page 1
MORRIS CERULLO WORLD EVANGELISM IA Company Limited by Guarantee) TRUSTEES, REPORT FOR THE YEAR ENDED 31 DECEMBER 2023 The Trustees present their annual report together with the audited financial statements of the Company for the year 1 January 2023 to 31 December 2023. The Annual Report serves the purposes of both a Trustees, report and a directors. report under company law. The Trustees confirm that the Annual Report and financial statemenls of the charilable Gompany comply with the cuent statutory requirements, the requirements of the charitable Gompany's governing document and the provisions of the Statement of Recommended Practice (SORP) applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS1021 (effeGtive 1 January 20191. Since the Company qualifies as small under section 382 of the Companies Act 2006, the Strategic Report required of medium and large companies under the Companies Act 2006 (Strategic Report and Directors, Report) Regulations 2013 has been orllitted. Objective5 and activities a. Pollcles and obJe¢tlves The principal object of the charity is to advance the Evangelical Christian faith. In setting objectives and planning for activities, the Trustees have given due consideration to general guidance published by th6 Charity Commission relating lo public benefit, including the guidance 'Public benefit.. running a charity IPB2}'. b. Strategies for achieving objectives The charily presents the Christian gospel to all people regardless of nalionalily, race or religious affiliation. As a result, it works in conjunction with various churches, pastors and leaders to achieve a common goal of Evangelistic training and church building. Many of these people head up other charities. The charity will from time to time, make contributions to other charities to help in achieving common goals. c. Activities undertaken to achieve objectives The advancement of the Evangelical Christian faith is achieved through the use of media ITV, radio, Satellite TV), publications Ibooks, magazines, direct mail, and audio and video tapes), public appearances, crusades, and partner seminars. However advancement of the Evangelical Christian faith is not limited to these melhods alone. d. Volunteers The part played by volunteers in achieving our objectives is vital. In keeping with recommended practice we have made an estimate of the number of hours that partners in the Ministry have given us free of charge during the year. We rely on volunteers not only to man our prayer lines at Ihe Offi during the week but also to acl as ushers, security guards and sales staff at our events. Some travel long distances at their own expense.. without their dedication many of the services that the Charity offers to the wider public would not happen. For this twelve month period across our evenls, prayer line and office assistance, we had 75 volunteer hours. Page 2
MORRIS CERULLO WORLD EVANGELISM {A Company Limited by Guarantee) TRUSTEES. REPORT {CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 Objectlves and activities (continued) e. Memberships During the period Jan to Dec 2023 46 new members were added to the Charity's mailing list. Achievements and performance a. Maln achievements of the Company Areas of activity during the year- Literature Events and Crusades Prayer lines Membership World Wide Outreach Support Llterature The Charity continued to distribute Christian literature around the World in English, Spanish, German and Hebr8W. 2023 Events and Crusades (UK) No UK meetings took place in 2023. 2023 Events and Crusades {Overseas} During the period the Charity contributed to successful Missions in.. USA Cosla RiGa Mexico Brazil Nigeria Indonesia Malaysia Panama Kenya Israel After the impact of Covid-19 globally, our ministry on line, reaching every major country on the planet has become even more important. With our online interaction increasing to over I million people. Daily live video content is broadcast around the world. Prayer Llnes Prayer Is offered on our main MCWE phone lines, with our UK office staff and volunteers praying with anyone who requests prayer support. Page 3
MORRIS CERULLO WORLD EVANGELISM (A Company Llmlted by Guarantee) TRUSTEES, REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 Achievements and performance (continued) b. Fundralslng a¢tlvities and income generation 1 } Our fundraising activities are limited lo tithes and offerings at our local events, as per many stsndard Church organisations. This is combined with regular mailings into our donors homes ministering and encouraging them to play an active role in carrwng the financial burden of our Worldwide missions. 2) We do not use any outside fundraising organisalions. 3) We do not apply for grant funding from any other organisation. We're 100 % donor supported. c. Investment policy and performance The Ministry has no specific investment policy. The Trustees believe the donated funds should be utilised for the purpose they were given. Due to the uncertain nature of the foreign exchange market the Trustees have opted out of the Gurrency market for the foreseeable future. Flnanclal revSew . Going concern After making appropriate enquiries, the Trustees have a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future. For this reason, they continue to adopt the going concèrn basis in preparing the financial statements. Further details regarding the adoption of the going concern basis can be found in the accounting policies. b. Reserves policy MCWE Inc USA works in conjunction with the Charity and provides financial support to see the fulfilment of their common objectives. The Charity has a contractual obligation to reimburse MCWE USA for all expenditure incurred on its behalf and as reflected in these accounts, in the development of literature. publications and other training materials and products. According to an operations agreement wilh MCWE USA, the Charity has the rèsponsibility to repay these obligations quarterly. This obligation will be mel as and when funds are available. MCWE USA confirms that it will continue lo provide financial support to the Charity to meet its ministry objectives. In view of the above arrangements the Trustees do not consider that any specific level of reserves needs to be maintained. Page 4
MORRIS CERULLO WORLD EVANGELISM (A Company Limited by Guarantee) TRUSTEES. REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 Principal risks and uncertainties The Board of Trustees had reviewed during the previous period an assessment of the risks lo which the Charity is exposed, particularly business, operational and financial risks and introduced through the Execulive Team a reporting regime to manage and reduce the identified risks. The Trustees agreed clear lines of delegation and authority to the Execulive Team. The income of the Charity is continuing on a downward Irend. The primary concern of the Board is the perceived increasing age of its donors and the need to establish a slrategy to attract younger donors remains a priority. This was considered and discussed at length at the AGM again in detail. During the previous financial period, David Cerullo has been recognised as President by the board of MCWE UK. During this time MCWE UK has merged and absorbed partner from IMUK, as a large cross section were th& same partner. No changes have been made lo our charitable trust and MCWE UK in this financial period. The Legacy Centre continues to hold events and is advancing our vision to share the gospel of Jesus Christ around the world with all people. d. Principal fundlng The Charity continues to be funded entirely from contributions made by the Members and other donors. It is not the policy of the Charity to ask or apply for grants or loan funding. structure> governance and managemènt a. Constltutlon Morris Cerullo World Evangelism is registered as a charitable company limited by guarantee and was set up by a Trust deed. b. Methods of appointment or election of Trustees The maximum number of Trustees allowed under the constilution is ten. The minimum required under the charity's constitution being three. Trustees are appointed as deemed necessary by the existing board from a short list drawn up for consideration by the Executive Team. This short list is drawn from the wider non voting membership. One third of the Board offers itself for re-election by rotation al the Annual General Meeting, providing they have served at least one year. The Chair and officers are appointed by the Trustees from among their number. The whole Board convenes once a year. but is reported to on a weekly and monthly basis by the Executive Team. Th8 Board, from time to time will consull by means of vidèo or telephone conferencing. Those Trustees offering themselves for re-election were re-elected unanimously Page 5
MORRIS CERULLO WORLD EVANGELISM (A Company Llmlted by Guarantee) TRUSTEES. REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 Structure, governance and management (continued) Oryanisational structure and decision-making policies Five United Kingdom resident Trustees in addition to David Cerullo who is involved in the day-to-day managemenl of the charity - they are Peter Tod, Andre Taylor, Verona Powell, Andreas Yiangou and Julian RiGhards. Rev Greg Mauro is responsible for the operational and ministry functions and is in daily contact with Julian Richards the European Director. However, practically the Trustees delegate the management of MCWE to the European Director, who reporls on the performance against the strategic and operational plans approved by the Trustees. Membership of MCWE The only full members of MCWE and those entitled to vote are the members of tho Board for the time being. There are a number of graded non-voting memberships, which carry a variety of benefits. These are as follows- President GVA Eagle Chairman's Inner Council Board of Governors Diamond Executive Elder Executive Elder Elder There is also a monthly subscription (GVA), which provides a bi-monthly magazine and regular updates on the activities of the Charity. Management and staffing Julian Richards Ihe European Director and Oliver Palmer the UK Office Manager have the responsibility for planning and developing the services and strategies for MCWE within the clearly defined policies set by the Trustees at the Annual General Meeting as updated from time to time by direct instruction. They ensure that the staff team is recruited and supported to provide Ihe skills and expertise needed to run a successful Chrislian organisation and that the moral and ethical values of MCWE are obseNed and maintained. Christine McKinney continues as our Partner Setvices Manager and is the major day to day link between the Charity and the majority of its donors and supporters. She is also responsible for the administration of all memberships and pledge collection. BeGause MCWE is a genuinely world wide organisation, communication via the intemet and computer systems is important. To ensure these systems are maintained and updated lo maximise the organisation's efficiency, we have Tim Preston of Norlhgate Solutions as an IT consultant. Tim is available for extended hours to enable the organisation's systems to be maintained. Our USA partnering office also provide systems support. d. Policies adopted for the induction and training of Tnjstees Prior to appointment each prospective Trustee signs a code of conduct and is required to complete an extensive questionnaire to enable the Board to assess in detail each candidate's suitability and relevant experience. On appointment a new Trustee receives a copy of the Memorandurn and Articles of Association of the Company together with the most recent accounts and the informalion pack provided to all Truslees for the Annual General Meeting. This pack 15 extensive. All new Trustees also receive a Gopy of the Charity Commission leaflet CC3. The Executive Team is instructed to update the members of the Board as required regarding UK law and accounting regulations in so far as changes may affect the charity. All new Trustees are invited to the UK office to meet the staff. Page 6
MORRIS CERULLO WORLD EVANGELISM (A Company Llmlted by Guaranteel TRUSTEES, REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 structure, governance and management (continued) e. Pay policy for key management personnel Julian Richards is the only UK DirectorlTrustee that is paid. This is for his full lime role as European Director, which is a position he has held for 29 years. He was in paid employment long before he became a Director on Compani8s House or Trustee of the Charity. He has no say on his salary or pay increases, this is left to the remaining members of the board. No other Directors receive any remuneration for their role as a Directorltruslee for MCWE UK. Plans for future perlods A main focus has been to continue get UK & European partner to visit the Legacy International Centre in San Diego, now this is fully operational with four major meetings planned in 2024 including the World Conference. Statement of Trustees, responsibilities The Trustees (who are also the directors of the Company for the purposes 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 eaoh financial year. Under company law, the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and of its incoming reSoUrS and application of resources, including its income and expenditure, for that period. In preparing these financial statements, the Trustees are required lo.. select suitable accounting policies and then apply them consistently., observe the methods and principles of the Charities SORP {FRS 102}', make judgments and accounting estimates that are reasonable and prudent., state whether applicable UK Accounting Standards (FRS 102) have been followed, subject to any material departures disclosed and explained in the financial statements- prepare thè financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business. The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the Companys transactions and disclose with reasonable accuracy at any time the financial position of the Company 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 Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. Disclosure of infomiation lo auditor Each of the persons who are Trustees at the time when this Trustees, Report is approved has confirmed that: so far as that Truslee is aware, there is no relevant audit information of which the charity's auditor is unaware, and that Trustee has taken all the steps that ought lo have been taken as a Trustee in order to be aware of any relevant audit information and to establish Ihal the charity's auditor is aware of that infomation. Page 7
MORRIS CERULLO WORLD EVANGELISM (A Company Limited by Guarantee TRUSTEES, REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 Audltor The auditor, Hillier Hopkins LLP, has indicated his willingness to continue in office. The designated Trustees will propose a m9tion reappointing the auditor at a meetin9 of the Trustees. Approv by er of the members of the board of Trustees and signed on their behalf by: hards tee Page 8
MORRIS CERULLO WORLD EVANGELISM (A Company Llmlted by Guarantee) INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF MORRIS CERULLO WORLD EVANGELISM Opinion We have audited the financial statements of Morris Cerullo World Evangelism (the 'charitable company,) for the year ended 31 December 2023 whiGh comprise the Statement of Financial Activities, the BalanGe Sheet. the statement of Cash Flows and the related notes. including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and Uniled 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 charitablè company's affairs as at 31 December 2023 and of its incoming resources and application of resources, including its income and expenditure for the year Ihen ended., have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice. and have been prapared in accordance with the requirements of the Charities Act 2011. Basis for opinion We conducted our audit in accordance with International Standards on Auditing (UK) (ISAS IUK)} 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 charitable company in accordance with the ethical requirements that are relevant lo our audit of the financial statements in the United Kingdom, inclLsding the Financial Reporting Council's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Conclusions relating to going concern In auditing the financial statements, we have concluded that the Trustées, use of the going concem 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 charitable compar)y's ability lo continue as a going concern for a period of at least Iwelve 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. Page 9
MORRIS CERULLO WORLD EVANGELISM {A Company Llmlted by Guarantee) INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF MORRIS CERULLO WORLD EVANGELISM (CONTINUED Other information The other InfOatIOn comprises the information included in the Annual Report other than the financial statements and our Auditovs Report thereon. The Trustees are responsible for the other information coniained within the Annual Report. Our opinion on the financial statements does not cover Ihe other information and, except to the extent otherwise explicilly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so. consider whether the other information is materially inconsistent with the financial slatements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material ir)consistencies or apparent material misstatements, we are required to determine whether this gives rise lo a material misstalement 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 faGt. We have nothing lo report in this regard. Matters on which we are requlred to report by exception We have nothing to report in respect of the following matters where the Charities (Accounts and Rèports) Regulations 2008 requires us to report to you if, in our opinion.. the information given in the Trustees, Report is inconsistent in any material respecl wilh the financial statements; or sufficient accounting records have not been kepl.. or the financial statements are not in agreement with the accounting records and returns; or we have not received all the information and explanations we require for our audit. Responsibilities of trustees As explained more fully in the Trustees, Responsibilities Statement, the Trustees (who are also Ihe directors of the charitable company for the purposes of company law) are responsible for Ihe preparation of the financial statements and for being satisfied that they give a true and fair view. and for such intemal 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 charitable company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concem basis of accounting unless the Trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but lo do so. Page 10
MORRIS CERULLO WORLD EVANGELISM (A Company Limited by Guaranteè) INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF MORRIS CERULLO WORLD EVANGELISM (CONTINUED) Auditor's responsibilities for the audit of the financial statements We have been appointed as audilor under section 145 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder. 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 Audilor'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 statemenls. Irregularities, including fraud, are instances of non-compliance with laws and regulation5. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.. the nature of the industry and sector, control envirorsment and performance including the remuneration incentives and pressures of key management., the primary responsibility for the prevention and deteclion of fraud rests wilh both those charged with governance of Ihe entity and management. We consider the results of our enquiries of management about their own identification and assessment of the risks of irregularities- any matters we identified having obtained and reviewed the Charitable Company's documentation of their policies and procedures relating to.. identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of non-compliance- detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud,. the internal controls established to mitigate risks of fraud or non-compliance with laws and regulations; the matters discussed among the audit engagement team regarding how and where fraud might occur in the financial statements and any potential indicators of fraud. As a result of these procedures, we considered the opportunities and incenlives that may exist within the organisation for fraud and identified Ihe greatest potential for fraud. In common with all audits under ISAS {UK), we are also required to perform specific procedures to respond to the risk of management override, including lesting journals and evalualing whether there was evidence of bias by the directors that represented a risk of material misslatement due to fraud. We also obtained an understanding of the legal and regulatory frameworks that the Charitable Company operates in, foGusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. We focused on laws and regulations that could give rise to a material misslatement in the financial ststements, inGluding, but not limited lo, the Companies Act 2006, the Charities Act 2011 and relevant lax legislation. Because of the inherent limitations of an audit. there is a risk that we will not detect all irregularitie5, including those leading to a material misstatement in the financial slatements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements. as we will be less likely to become aware of instances of non-compliance. Tha risk is also greater regarding irregularities occurring due lo fraud rather than arror, as fraud involves intentional concealment. forgery, collusion, omission or misrepresentation. A further description of our responsibilities for Ihe audit of the financial statements is located on tho Financial Page11
MORRIS CERULLO WORLD EVANGELISM (A Company Llmlted by Guarantee) INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF MORRIS CERULLO WORLD EVANGELISM (CONTINUED) Reporting Council's w.ebsite at.. www.frc.or Auditor's Report. .uklaudilorsres onsibilities. This description forms part of our Use of our report This report is made solely to the charitable Company's trustees, as a body. in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charitable companls truslees those matters we are required to state to them in an Auditor's Report and for no other purpose. To the fullest extenl permilled by law, we do not accept or assume responsibility to anyone other than the charitable company and its members. as a body, for our audit work, for this report, or for the opinions we have formed. ttj [ (AJ U. rf LDF Hillier Hopklns LLP Chartered Accountants Statutory Auditor Radius House 51 Clarendon Road Watford Herts WD17 1HP Date: Hillier Hopkins LLP are eligible to act as auditors in terms of sectlon 1212 of the Companies Act 2006. Page 12
MORRIS CERULLO WORLD EVANGELISM (A Company Llmlted by Guarantee) STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNTI FOR THE YEAR ENDED 31 DECEMBER 2023 Unrestricted funds 2023 Total funds 2023 Total funds 2022 Note Income from: Donations and18gacies Charitable activities Investments 506,679 8,791 355 506,679 8,791 355 570,431 119,788 Total income 515,825 515,825 690,219 Expenditure on: Raising funds Charitable activities 100 679,692 679,692 894,490 Total exp8ndllure 679,692 679,692 894,590 Net movement in funds (163,8671 1163,867) (204,371) Reconciliation of funds: Total funds brought forward Net movement in funds 284,629 {163,867) 284,629 {163,867} 489,000 (204,371) Total funds carried forward 120,762 120,762 284,629 The Statement of Financial Activities includes all gains and losses recognised in the year. The notes on pages 17 to 30 form part of these financial statements. Page 13
MORRIS CERULLO WORLD EVANGELISM IA Company Limited by Guarantee) REGISTERED NUMBER: 02175712 BALANCE SHEET AS AT 31 DECEMBER 2023 2023 2022 Note Fixed assets Tangible assets Current assets 10 3.921 6,274 Current Investment Debtors Cash at bank and in hand 300,000 17,247 247,555 300,000 126,468 236.083 12 564,802 662.551 Creditors: amounts falling due within one year 13 {447,961) (384,196) Net current assets 116,841 278,355 Total assets less current liabilities 120,762 284,629 Total net assets 120,762 284,629 Charity funds Restricted funds Unrestricted funds 14 14 120,762 284, 629 Total funds 120,762 284, 629 The entity was entitled to exemption from audit under section 477 of the Companies Act 2006. The members have not required the entity to obtain an audit for the year in question in accordance wilh section 476 of the Companies Act 2006. However. an audit is required in accordance with section 145 of the Charities Act 2011. The Trustees acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and preparation of financial statements. The financial statements have been prepared in accordance with the provisions applicable to entities subject to the small companies regime. Page 14
MORRIS CERULLO WORLD EVANGELISM IA Company Limited by Guarantee) REGISTERED NUMBER: 02175712 BALANCE SHEET (CONTINUED) AS AT 31 DECEMBER 2023 The fin st ments were approved and authorised for issue by the Trustees and signed on their behalf by.. lian Richards Date.. The notes on pages 17 to 30 form part of these financial statements. Page 15
MORRIS CERULLO WORLD EVANGELISM (A Company Llmlted by Guarantee) STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2023 2023 2022 Cash flows from operating activities Net cash used in operating activities 11,472 109.541 Cash flows from investing activities PurGhase of tangible fixed assets (3, 770) Net cash provided byl(used in) investing activities (3,770) Cash flows from financing activities Nel cash provided by financlng actlvitles Change in cash and cash equlvalents In the year Cash and cash equivalents at the beginning of tho year 11,472 105,771 236,083 730,312 Cash and cash equivalents at the end of the year 247.555 236,083 The notes on pages 17 to 30 fomi part of these financial statements Page 16
MORRIS CERULLO WORLD EVANGELISM (A Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 General information The Charity is a company limited by guarantee, incorporateij in England and Wales. Accounting policies 2.1 Basis of preparation of financial statements The financial statements have been prepared in accordance with the Charities SORP IFRS 1021 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 IFRS 102) (effective 1 January 2019), Ihe Financial Reporting Standard applicable in the UK and Rèpublic of Ireland (FRS 1021 and the Companies Act 2006. Morris Cerullo World Evangelism meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaGlion value unless otherwise stated in the relevant accounting policy. 2.2 Golng conGern After making appropriate enquiries, the Trustees have a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future. For this reason, they continue to adopt the going concern basis in preparing the financial stalement5. 2.3 Income All income is recognised once the Company has entitlement to the income, il is probable thal the income will be received and the amount of income receivable can be measured reliably. The recognition of income from legacies is dependent on establishing entitlement, the probability of receipt and the ability lo eslimate with sufficient accuracy the amount receivable. Evidénce of entitlement lo a legacy exists when the Company has sufficient evidence that a gift has been left to them (through knowledge of the existence of a valid will and the death of the benefactor) and the executor is satisfied that the property in queslion will not be required to satisfy claims in the estate. Receipt of a legacy musl be recognised when it is probable that il will be received and the fair value of the amount receivable, which will generally be the expected cash amount to be distributed to the Company, can be reliably measured. Grants are included in the Statement of Financial Activities on a receivable basis. The balance of income received for specific purposes but not expended during the period is shown in the relevanl funds on the Balance Sheel. Where income is received in advance of entitlement of reipt, its recognition is deferred and included in creditors as deferred income. Where enlitlement occurs before income is received, the income is accrued. Income tax recoverable in relation to invoslment income is recognised at the time tho investment income is receivable. Page 17
MORRIS CERULLO WORLD EVANGELISM {A Company Limit8d by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 Accounting pollcles (continued) 2.4 Expenditure Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third paty, it is probable thal 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 belween those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent. and depreciation charge5 allocaled on the portion of the asset's use. Expenditure on raising funds includes all expenditure incurred by the Company to raise funds for its charitable purposes and includes costs of all fundraising activilie5 events and non-charitable trading. Expenditure on charitable activities is incurred on directly undertaking the activities which further the Company's objectives, as well as any associated support costs. All expenditure is inclusive of irrecoverable VAT. 2.5 Government granls Government grants relaling to langible fixed assets are treated as deferred income and released to the Statement of Financial Activilies over the expected useful lives of the assets concerned. Other grants are credited to the Slatèmenl of Financial Activities as the related expenditure is incurred. 2.6 Tangible flxed assets and depreciation Tangible fixed assets costing £500 or more are capitalised and recognised when future economic benefits are probable and the cost or value of Ihe asset can be measured reliably. Tangible fixed assets are initially recognised at cost. After recognition. under the cost model, tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. All costs incurred to bring a tangible fixed asset into its intended working condition should be included in the measurement of cost. Deprecialion is charged so as to allocale Ihe cost of tangible fixed assets less their residual value over their estimated useful lives, on a ieducing balance basis. Deprecialion is provided on the following basis= Office equipment 25 % - 50 % on written down value 2.7 Investments Current asset investments are initially measured al cost and are subsequently re-measured at their fair value.These are investments which held for resale or pending their sale Page 18
MORRIS CERULLO WORLD EVANGELISM IA Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 Accounting policies (continued) 2.8 Debtors Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued at th8 amount prepaid net of any trade discounts due. 2.9 Cash at bank and in hand Cash at bank and in hand include5 cash and short-term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account. 2.10 Liabilities and provisions Liabilities are recognised when there is an obligation at the Balance Sheet date as a result of a past event, il is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably. Liabilities are recognised at the amount that the Company anlicipales it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide. Provisions are measured al the best estimate of the amounts required to settle the obligation. 2.11 Financial instruments The Company only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlemenl value with the exception of bank loans which are subsequently measured at amortisad cost using the effective interest method. 2.12 Pensions The Gompany operates a defined contribution pension scheme and the pension charge represents the amounts payable by the company to the fund in respect of the year. 2.13 Fund accounting General funds are unrestricted funds which are available for use at tha discretion of the Trustees in furtherance of the general objectives of the Company and which have not been designated for other purposes. Investment income, gains and losses are allocated to the appropriate fund. Page 19
MORRIS CERULLO WORLD EVANGELISM (A Company Limited by Guarant88) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 Income from donations and legacies Unrestricted funds 2023 Total funds 2023 Total funds 2022 Donations 506,679 506,679 570,431 Income from charitable activities Unrestricted funds 2023 Total funds 2023 Total funds 2022 Income from charitable activities 8,791 8,791 119,788 Investment income Unrestrlcted funds 2023 Total funds 2023 Total funds 2022 Rental Income 355 355 Page 20
MORRIS CERULLO WORLD EVANGELISM IA Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 Analysis of expenditure on charitable activities Summary by fund type Unrestricted funds 2023 Total 2023 Total 2022 Charitable activities 679,692 679,692 894,4go Analysis of expenditure by activltles Activities undertaken directly 2023 Support costs 2023 Total funds 2023 Charitable actlvities 511,703 167,989 679,692 Activities undertaken directly 2022 Support costs 2022 Total funds 2022 Charitable aclivities 737,049 157,441 894,490 Page 21
MORRIS CERULLO WORLD EVANGELISM (A Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 Analysis of expenditure by actlvlties (continued) Analysls of dlrect costs Charltable activities- MCWE 2023 Total funds 2023 Total funds 2022 Staff costs Printing, postage & publications Telephone Conferences Donations Missions Accommodation and travel Other expenditure 106,114 16,270 7,013 52,225 350 305,963 21,689 2,079 106,114 16,270 7,013 52,225 350 7 15, 105 24,026 6,497 21,525 175 545,207 20,857 3,657 305,963 21,689 2,079 511,703 511,703 737,049 Analysis of support costs Charitable actlvltles- MCWE 2023 Total funds 2023 Total funds 2022 Staff costs Depreclation Professional and bank Other expenditure Premises General office & finance Communications Foreign exchang'e movements Auditors r8muneration Trustee remuneration 22,362 2,353 19,145 31,860 9,989 10,436 4,523 1,571 5,750 60,000 22,362 2,353 19,145 31,860 9,989 10,436 4,523 1,571 5,750 60,000 24, 722 3, 765 9,218 31,573 7,258 11,802 3,853 5,250 60,000 167,989 167,989 157,441 Page 22
MORRIS CERULLO WORLD EVANGELISM (A Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 Staff costs 2023 2022 Wages and salaries Social security costs Contribution to defined contribution pension schemes 168,458 16,418 3,600 177,958 17,862 4,007 188,476 19g.827 The average number of persons employed by the Company during the year was as follows.. 2023 2022 Employees No employee received remuneration amounting to more than £60,000 in either year. Key management personnel received remunèration and benefits of £60,000 (2022.. £60,000) during the perlod. Trustees. remuneratlon and expenses During the year,.one or more Truslees has been paid remuneration or has received other benefits from an employment with the Company. The value of Trustees. remuneration and other benefits paid to Julian Richards was salary £60,000 (2022: £60,000) and employer pension contributions £1,321 (2022.. £1,321) During the year ended 31 December 2023. no Trustee expenses have been incurred (2022 - £NIL). Page 23
MORRIS CERULLO WORLD EVANGELISM IA Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 10. Tangible fixed assets Offl¢e equlpment Cost or valuation At 1 January 2023 164,628 At 31 December 2023 164,628 Depreciation At 1 January 2023 Charge for the year 158,354 2,353 At 31 D8C8mber 2023 160,707 Net book value At 31 December 2023 3,921 At 31 December 2022 6,274 11. Current Investments 2023 2022 Propety 300,000 300,000 A legacy including a property was left to the charity in a prior year. The property was sold after the year end. Page 24
MORRIS CERULLO WORLD EVANGELISM IA Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 12. Debtors 2023 2022 Due within one year other debtors PrepayTnent5 and accrued income Tax recoverable 3,942 5,843 7,462 73.963 5, 820 46, 685 17,247 126,468 13. Credltors: Amounts falling due wlthln one year 2023 2022 Bank overdrafts Other creditors Accruals and deferred income 431,319 16,637 370,542 13,654 447,961 384, 196 Page 25
MORRIS CERULLO WORLD EVANGELISM (A Company Limited by Guarant88) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 14. Statement of funds Statement of funds - current year Balance at 31 December 2023 Balance at 1 January 2023 Income Expenditure Unrestricted funds General Funds- all funds 284,629 515.825 (679,692) 120.762 Page 26
MORRIS CERULLO WORLD EVANGELISM (A Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 14. Statement of funds (continued) Statement of funds . prior yèar Balance at 31 D8rnber 2022 Balance at l January 2022 Income Expenditure Unrestricted funds General Funds - all funds 489,000 690,219 (894, 590) 284, 629 15. Summary offunds Summary of funds . current year Balance at 31 December 2023 Balance at 1 January 2023 Income Expendlture General funds 284.629 515,825 1679,692) 120,762 Summary of funds - prior year Balance at 31 December 2022 Balance at f January 2022 Income Expenditure General funds 489,000 690,219 (894, 590) 284.629 Page 27
MORRIS CERULLO WORLD EVANGELISM (A Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 16. Analysis of net assets between funds Analysis of net assets between funds - current year Unrestricted funds 2023 Total funds 2023 Tangible fixed assets Current assets Creditors due within one year 3,921 564,802 (447,961) 3,921 564,802 (447,961) Tolal 120,762 120,762 Analysis of net assets between funds - prior year Unr8striGted funds 2022 Tofal funds 2022 Tangible fixed assets Current assets Creditors due within one year 6,274 6,274 662,551 662,551 (384, 196) (384,196) Total 284,629 284, 629 17. Reconciliation of net movement in funds to net cash flow from operating activitles 2023 2022 N8t expenditure for the year {as per Ststement of Financial Activities) 1163,867) (204,371) Adjustments for: Depreciation charge5 Decreasel(increasel in debtors Increase in creditors 2,353 109,221 63,765 3, 765 (37,102) 347,249 Net cash provided by operating activities 11,472 109,541 Page 28
MORRIS CERULLO WORLD EVANGELISM (A Company Limited by Guarantee> NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 18. Analysis of cash and cash equivalents 2023 2022 Cash In hand 247,555 236,083 Total cash and cash equlvalents 247,555 236,083 19. Analysls of changes in net debt At1 January 2023 Cash flows At31 December 2023 Cash at bank and in hand Bank overdrafts repayable on demand 236,083 11,472 (5) 247,555 (5) 236,083 11,467 247,550 20. Penslon commitments The company operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the company in an independently administered fund. Th8 pension cost charge represent5 contributions payable by the company to the fund and amounted to £11,98512022 - £13,079). 21. Operating lease commltments Al 31 December 2023 the Company had commitments to make future minimum lease payments under non-cancellable operating leases as follow5- 2023 2022 Not later than 1 year Later than 1 yéar and not later than 5 years 11,266 5,137 16,516 16,507 16,403 33,023 Page 29
MORRIS CERULLO WORLD EVANGELISM (A Company Llmlted by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 22. Related party transactions Mr D Cerullo, who is a Trustee of Morris CeNllo World Evangelism Ltd, is also a Trustee of Morris Cerullo World Evangelism Inc. The following transactions look place in the period.. Reimbursed expenses relating to partner appeals i.e. promotion, teaching, training and monthly publicalions (including all production, creative work. printing and postage) were performed on behalf of MCWE Ltd tolalling £307.530 (2022- £542,786). At the balance sheet date, the company owed lo Morri5 Cerullo World Evangelism Inc. an amount of £433,533 (2022 - £370,542). Page 30