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2021-12-31-accounts

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THE INTERNATIONAL SERVICE FELLOWSHIP TRUST

(known as INTERSERVE GREAT BRITAIN & IRELAND)

Company Registration Number: 02789773 Charity Commission Registration Number: 1020758 OSCR number: SCO47295

(A company limited by guarantee having no share capital)

ANNUAL REPORT AND FINANCIAL STATEMENTS

31st December 2021

DocuSign Envelope ID: 5667BD6C-7C9D-4A7D-8D1F-77F8BAC1EA5E

THE INTERNATIONAL SERVICE FELLOWSHIP TRUST

ANNUAL REPORT AND FINANCIAL STATEMENTS - 31ST DECEMBER 2021

Contents Page
Report of the directors 1-9
Independent auditor's report 10-13
Statement of financial activities 14
Balance sheet 15
Cash flow statement 16
Notes to the financial statements 17-35

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REPORT OF THE DIRECTORS

The directors present their report together with the financial statements of the charitable company for the year ended 31st December 2021. The financial statements comply with current statutory requirements, the Memorandum and Articles of Association and the Statement of Recommended Practice, SORP (FRS102) – Accounting and Reporting by Charities issued in 2019.

1. Our nature, charitable purpose & approach

Our registered name is ‘ The International Service Fellowship Trust ’ (ISFT) and we are a member of the global alliance of agencies known as ‘ The Interserve Fellowship ’, which is a voluntary collaboration of fourteen independently registered charities that recruit, send and support Christian workers through twelve national offices and a number of partnerships with other organisations. Our workers serve in Asia and the Arab world and among Asians and Arabs in Great Britain & Ireland (GBI). The international fellowship operates on the basis of agreed ‘foundation documents’, which include a ‘statement of faith’ and a common vision, purpose and values.

Our vision:

To see lives and communities transformed through encounter with Jesus Christ.

Our purpose: To make Jesus Christ known among the peoples of Asia and the Arab World.

How we work:

Interserve is ‘evangelical’ in its understanding and practice of the Bible’s teaching. It works for , with and through the local church in around 40 countries across Asia and the Arab world, as well as among these peoples living in ‘diaspora’ in Great Britain & Ireland. Interserve works ‘wholistically’, or in an integrated way, serving the whole person – i.e. body, mind and spirit, within a social context.

We do this through:

Rather than running our own projects, Interserve workers are often placed into projects led by other charities, local churches and other institutions set up to meet the common good and in line with our charitable objects. In many cases, Interserve workers do not obtain a salary from other charities and organisations and are provided with living allowances and ministry expenses by Interserve. In setting long-term strategies, reviewing annual priorities and regularly discussing the impact that the activities of the charity are having, the Trustees have regard to the Charity Commission’s general guidance on public benefit and our charitable objects.

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2. Strategic Report

What we did in 2021: Activities, Achievements and Performance

Activities in 2021 continued to be impacted by the COVID-19 pandemic around the world. At the end of the year 37 long-term workers (serving more than two years) remained engaged in overseas work, either in situ or remotely from the UK. Between them, they were engaged in activities such as:

Within the UK, at the end of 2021, 42 long-term workers and 22 associate members were engaged in activities such as:

Our National Office support staff continued to provide:

As well as placement of workers overseas and within the UK to meet our objectives, we also continued to engage churches and individual supporters through ongoing communications designed to inform, stimulate thought and equip people. These included:

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In response to ongoing critical needs caused by the Covid-19 pandemic, we ran for a second time a Hospitals of Hope fundraising campaign to enable hospitals in South Asia to continue to provide essential services. Over £43,000 was raised.

In 2021the Board of Trustees undertook a comprehensive strategic review of the charity as we seek to respond effectively to the changing global context that we find ourselves in. This resulted in three strategic intents: growing diversity, growing responsiveness and growing community. This is providing direction for the charity’s leadership team, with focus on a number of strategic initiatives in 2022.

Financial review & how expenditure supported objectives

The financial results for the year ended 31st December 2021 are reflected in the Statement of Financial Activities on page 14. The overall deficit for the year was £76,051 (2020 Surplus - £326,580). The deficit for the year included £95,402 from legacies (2020 - £690,693 ). This legacy income is transferred to designated funds, where 10% is allocated for use in grant support of the work of associated organisations’ projects to further the achievement of our objectives. The remaining 90% is allocated to a Development fund which is being used to meet the strategic investment needs of Interserve activity.

The unrestricted funds reported a net deficit of £156,879, consisting of net expenditure of £275,114, offset by a net addition of £118,235 arising from a combination of unrealised gains on investments and actuarial gains on the defined benefit pension scheme.

Of the total income of £2,312,463 (2020 - £3,080,809); donations & gifts given by individuals and organisations in support of our objects totalled £2,096,539 (2020 - £2,234,790). Of this sum £1,487,604 was donations and gifts in direct support of our “Partners” (our frontline workers overseas and in the UK), who are targeted with raising sufficient support under our personalised support system, to meet the costs of their ministry activity both overseas in countries across the Asian and Arab world and in the UK.

From the total income raised, £1,453,668 (2020 - £1,502,148) has been spent directly in support of the charity’s Partners and their project work. Included in this cost is £185,854 (2020 - £182,294) which is used to cover the costs within the National Office budget in undertaking the essential Partner support activities, including member care and financial administration. The remainder of the income is applied to the direct costs of the individual Partners and associated projects, being £1,267,814 spent in this year (2020 - £1,319,854). The balance is carried forward to meet the direct and support costs of the Partners and projects in the coming year.

Of our total activity costs of £2,442,851 spent in the year (2020 - £2,627,853), £1,152,525 was spent on our Overseas activities (2020 - £1,325,281), £904,389 on UK based activities (2020 - £843,721), £352,599 on our National outreach (2020 - £420,812) and £33,338 on Resources and Conferences (2020 - £38,039). After income generated from the sale of resources and conference income, the

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Resources and conferences activity had a net cost of £17,138. Further detail can be found in Notes 6 & 7 to the financial statements.

There has been a increase in the support and governance costs to £754,670 in the year (2020 - £666,254). Further analysis of these costs is given in Note 8 to the financial statements

Reserves & Investment policy

Interserve keeps reserves and can spend them in order to meet a range of issues including:

Interserve’s Reserves Policy involves:

At 31 December 2021, Interserve’s total charity funds amounted to 4,714,677 (2020-£4,790,728) but of these funds, £3,193,299 ( 2020- £3,107,489) were in endowment or other restricted funds set aside for specified purposes, designated towards the support of specific partners, in fixed assets not practically realisable in the near term or had otherwise been committed as per (a).

Of the balance of £1,521,378 (2020- £1,683,239) Interserve considers it reasonable to hold reserves of c£585,000 to cater for potential adverse experience .This is approximately 35 weeks of its General Fund expenditure or approximately 11 weeks of its overall expenditure for the year ending 31 December 2021.

Interserve’s Reserves Policy is reviewed annually by the Finance and Risk Management Group (FRMG, a sub-committee of the Board), bearing in mind current known risks which are regularly

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assessed by this Group. It was most recently reviewed by this Group in May 2022 and agreed by the Board in June 2022.

Investment Policy : In accordance with our ‘Investment Policy’, investments held have been acquired in accordance with the powers available to the directors. The investments are held in a mix of asset classes in order to provide capital growth over the long term together with lower risk investments providing income security and the ability to react to cash demands as highlighted by the reserves policy, in accord with the Investment policy. In line with its values, Interserve will not invest in market sectors such as tobacco, arms, alcohol, gambling or pornography. The application of the Investment policy is overseen by the FRMG on behalf of the Board.

Plans for the Future

As travel restrictions around the world continue to ease, this has enabled more overseas activity to resume and we anticipate that 2022 will see the charity’s engagement overseas return to something closer to 2019 levels. The main focus for the charity over the coming year will be implementation of the strategic priorities set by the Trustees. A number of initiatives are planned, including:

We are also actively recruiting for key personnel to increase ministry activities at our property in Birmingham, St John’s House, many of which had to stop due to Covid-related restrictions.

Principal Risks and Uncertainties

All significant activities undertaken are subject to a risk review as part of an ongoing management process using a robust Risk Register. The trustees and management team review these risks on an ongoing basis and satisfy themselves that adequate systems and procedures are in place to manage the risks identified. Major risks are identified by the management team in collaboration with a Finance and Risk Management Group (FRMG) which maintains the Risk Register; scrutinised and approved by the Board.

We believe that our greatest strategic risk going forward is the failure to recruit and retain longterm workers to carry out the activities of the charity. Underlying factors that increase the likelihood of this risk include potential long-term restrictions on travel as a result of the pandemic, less willingness of governments to grant visas to overseas workers and a trend towards decreasing lengths of service. Steps to mitigate this risk include development and maintenance of a relevant communications strategy and active promotion of opportunities for service, commitment to providing good care to existing workers in order to maximise retention and more flexible processes for matching workers with opportunities.

As a charity, Interserve is dependent on the donations of individuals, churches, and charitable trusts. There is a risk of decline in income which will impact both the short-term operations and the longterm viability of the organisation. To mitigate this risk our fundraising team seeks to maintain a

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diverse range of funding streams that include regular and one-off donations, legacy income and income-generating activities. Management accounts are scrutinized monthly by the management team and quarterly by the Finance and Risk Management Group and a cash reserves policy is followed. Other operational risks in areas such as safeguarding, and data protection are minimized through maintaining up to date policies and processes and comprehensive training of staff and volunteers.

Political instability or insecurity in countries where personnel are located is an ongoing reality. Interserve International has robust systems and processes in place to ensure rapid and appropriate responses when needed. We also actively monitor laws and regulations related to financial sanctions in order to ensure compliance whilst seeking to work in some of the neediest parts of the world.

3. Governance and management structures

Governance : The charitable company is governed by its Memorandum & Articles of Association. The directors form its Board, and they are responsible for appointing the National Director (the senior role of the management team), approving the Annual Report and financial statements, appointing the auditors, and ensuring that the charitable company is managed by the National Director in accordance with the policies established by the Board from time to time.

The directors are recruited through recommendations from Board members and others. An audit of skills, training and experience is kept and is used to prioritise the selection of people that are needed on the Board. The National Director (or Company Secretary) provides an orientation programme with new directors after appointment.

The Finance and Risk Management Group (FRMG) is a sub-committee of the Board. This committee monitors the work of the Finance Manager and is tasked by the Board with overseeing the preparation of the Annual Report & Financial Statements; the budgeting process; the audit process; and the riskmanagement process.

The National Director, through a National Leadership Team, is responsible for taking all actions necessary to achieve the aims of the charity.

International: Our involvement with the International Fellowship continues through the role of the Chair of the Board and the National Director, who are both voting members of the International Leaders' Consultation . The Leaders’ Consultation (LC) elects the governing body, called the International Council (IC), and holds it accountable for the execution of the policies of the broader Interserve Fellowship, internationally.

Interserve in Great Britain and Ireland (Interserve GBI) has signed a “Covenant of Fellowship” with the other entities within the International Fellowship. The covenant commits Interserve GBI to uphold the statement of faith, purpose statement, vision and values of the International Fellowship, to work within the accountability structures by which the fellowship functions, to observe agreed financial principles and procedures and maintain consistent communications. At the same time, Interserve GBI retains its legal autonomy within the International Fellowship and duly operates within the charity laws and regulations within its registered territories.

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Management pay policy : This is scrutinised periodically and reviewed annually by the Board. Key management personnel pay and remuneration is set within the context of an overall staff pay and remuneration pay-scale policy. There were no employees who received employee benefits of more than £60,000 during the reporting period.

4. Reference and administrative details

Constitution

The International Service Fellowship Trust was incorporated as a company limited by guarantee on 12th February 1993 (registration number 2789773) and is governed by its Memorandum and Articles of Association. All the business and assets of the unincorporated association INTERSERVE and ISFT Limited were assigned by deed to The International Service Fellowship Trust on 1st March 1993. This company is registered with the Charity Commission in England and Wales under reference 1020758 and with the Scottish Charity Regulator in Scotland under reference SC047295.

The directors may at any time appoint a member to be a director either to fill a casual vacancy or by way of an additional director within the limits set out in the Memorandum and Articles of Association, namely a minimum of 8 and a maximum of 15.

Trading names

The International Service Fellowship Trust operates as Interserve Great Britain and Ireland. It also uses the trading name of Kitab, or Kitab Interserve Resources for its book publication and marketing activity.

Registered Office

652 Alum Rock Road, Birmingham B8 3NS

Directors

The directors who served during the year were as follows:

Mr Kevin Ashman Mr Gordon Brown Mrs Keiko Butterworth Mrs Jilda Clark Ms Shadi Fatehi (resigned 4 December 2021) Rev Jane Howitt (Chair) Mr Malcolm Kemp (Treasurer) Mrs Ann McConkey Dr Sean Oliver-Dee (resigned 19 June 2021) Mrs Jane Showell-Rogers (resigned 5 March 2022) Mr Onkar Singh Rev John Smuts (Vice Chair) Mr Jude Olisa (appointed 19 June 2021)

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Relevant organisations

Principal Bankers

Barclays Bank Plc Ashton House 497 Silbury Boulevard Milton Keynes MK9 2LD

Close Brothers Treasury 4[th] Floor 10 Crown Place London EC2A 4FT

Auditor

Griffin Stone Moscrop & Co. 21-27 Lamb’s Conduit Street London WC1N 3GS

Actuaries

Barnett Waddingham LLP Chalfont Court Hill Hill Avenue Amersham HP6 5BB

Solicitors

H.R Keelys LLP 28 Dam Street Lichfield, Staffordshire WS13 6AA

Property

Coley & Tilley Solicitors Neville House Waterloo Street Birmingham B2 5UF

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Directors' responsibilities

The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards.

Company law requires the directors to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and of its incoming resources and application of resources, including the income and expenditure, of the charitable company for that year. In preparing these financial statements the board of directors are required to:-

a) select suitable accounting policies and then apply them consistently;

b) observe methods and principles in the Charities SORP;

c) make judgments and estimates that are reasonable and prudent;

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

e) prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in operation.

The directors are responsible for keeping adequate accounting records which disclose with reasonable accuracy at any time the financial position of the charitable company, and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and taking reasonable steps for the prevention and detection of fraud and other irregularities.

As far as the members of the Board are aware, there is no relevant audit information of which the charitable company's auditor is unaware.

All of the members of the Board have taken all steps that they ought to as directors in order to make themselves aware of any relevant audit information and to establish that the charitable company's auditor is aware of that information.

Auditor

A resolution to re-appoint Messrs Griffin Stone Moscrop & Co, Chartered Accountants and Registered Auditors as auditor will be proposed at the annual general meeting.

The above Directors Report and Strategic Report have been approved by the Board of Directors on 10 June 2022 and signed on its behalf by:-

C J BINDER SECRETARY

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INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF THE INTERNATIONAL SERVICE FELLOWSHIP TRUST

Opinion

We have audited the financial statements of The International Service Fellowship Trust (the ‘charitable company’) for the year ended 31 December 2021 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement , and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

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

Conclusions relating to going concern

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

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

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

Other information

The other information comprises the information included in the trustees annual report, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the

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INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF THE INTERNATIONAL SERVICE FELLOWSHIP TRUST (continued)

financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report and the directors’ report.

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

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement set out on pages 9 and 10, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

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INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF THE INTERNATIONAL SERVICE FELLOWSHIP TRUST (continued)

Irregularities, including fraud, are instances of non-compliance with laws and regulations. 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:

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also:

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

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INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF THE INTERNATIONAL SERVICE FELLOWSHIP TRUST (continued)

Use of our report

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

Reema Mistry ACA (Senior Statutory Auditor) 21-27 Lamb's Conduit Street For and on behalf of GRIFFIN STONE MOSCROP & CO London, WC1N 3GS Statutory Auditor June 2022 13

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STATEMENT OF FINANCIAL ACTIVITIES (including the Income and Expenditure Account) FOR THE YEAR ENDED 31[ST] DECEMBER 2021

Note ed
Unrestrict
funds		 d
Restricte
funds		 nt
Endowme
funds		 2021
Total
funds		 2020
Total
funds
£ £ £ £ £
Income and endowments from:
Donations and legacies 2 1,997,359 215,267 - 2,212,626 2,960,268
Charitable activities 3 64,909 - - 64,909 72,554
Investments 4 34,928 - - 34,928 47,987
Total 2,097,196 215,267 - 2,312,463 3,080,809
Expenditure on:
Raising funds 5 103,334 - 103,334 76,673
Charitable activities 6 2,268,976 173,875 - 2,442,851 2,627,853
Total 2,372,310 173,875 - 2,546,185 2,704,526
Net income/(expenditure)
before movements on		 (275,114) 41,392 - (233,722) 376,283
Net gains on investments 17 33,235 3,862 35,574 72,671 (17,703)
Net income/(expenditure) 10 (241,879) 45,254 35,574 (161,051) 358,580
Other recognised (losses)/gains:
Actuarial ( losses)/gains on
defined benefit pension scheme 21 85,000 - - 85,000 (32,000)
Net movement in funds (156,879) 45,254 35,574 (76,051) 326,580
Reconciliation of funds:
Total funds brought forward 11 4,367,898 41,874 380,956 4,790,728 4,464,148
Total funds carried forward 4,211,019 87,128 416,530 4,714,677 4,790,728

The attached notes form part of these financial statements.

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BALANCE SHEET AS AT 31[ST] DECEMBER 2021 Company Registration Number 02789773

Note
Fixed assets
Tangible assets
16
Investments
17
Current assets
Stocks
18
Debtors
19
Investments - notice deposits >3 months
Property
Cash at bank and in hand
Creditors: amounts falling due
within one year
20
Net current assets
Total assets less current liabilities
Defined benefit scheme provision
21
Total net assets
The funds of the charity:
Endowment fund
22,26
Restricted income funds
23,26
Unrestricted funds:
Designated funds
24,26
General fund
25,26
Total charity funds		 £
£
£
£
1,048,358
1,110,948
1,288,697
1,216,026
2,337,055
2,326,974
21,792
22,437
810,377
1,044,883
760,771
754,325
-
300,000
1,114,414
768,850
2,707,354
2,890,495
132,732
117,741
2,574,622
2,772,754
4,911,677
5,099,728
(197,000)
(309,000)
4,714,677
4,790,728
416,530
380,956
87,128
41,874
3,592,363
3,810,357
618,656
557,541
4,714,677
4,790,728
2021
2020
2,707,354
132,732

Approved and authorised for issue by the board of directors on 10 June 2022 and signed on its behalf by:-

) ) ) Rev Jane Howitt ) ) DIRECTORS ) ) ) ) Mr Malcolm Kemp )

The attached notes form part of these financial statements.

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CASH FLOW STATEMENT FOR THE YEAR ENDED 31[ST] DECEMBER 2021

2021 2020
Note Total funds Total funds
£ £
Cash flows from operating activities:
Net cash provided by operating activities 27 17,081 22,455
Cash flows from investing activities:
Dividends, interest and rents from investments 28,483 39,671
Proceeds from the sale of property 300,000
Purchase of property, plant and equipment - (4,437)
Invest in notice deposit accounts > 3 months - 200,000
Net cash provided by investing activities 328,483 235,234
Change in cash and cash equivalents in the reporting
period 345,564 257,689
Cash and cash equivalents at the beginning of the
reporting period 768,850 511,161
Cash and cash equivalents at the end of the reporting
period 28 1,114,414 768,850

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NOTES TO THE FINANCIAL STATEMENTS - 31[ST] DECEMBER 2021

1. Accounting policies

(a) Basis of preparation and assessment of going concern

The financial statements have been prepared in accordance with the Charities SORP (FRS 102) Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

The charity constitutes a public benefit entity as defined by FRS 102.

The directors consider that there are no material uncertainties about the charity’s ability to continue as a going concern.

(b) Funds structure

The charity has a single permanent endowment. This endowment fund arises from an appeal by the charity called “Interserve Plus Fund”. The purpose of the appeal was to create a permanent fund, the income of which is included in unrestricted funds and is used for meeting International support costs.

Restricted funds are funds which are used in accordance with specific restrictions imposed by the donors or which have been raised by the charity for particular purposes. The aim and use of each restricted fund is set out in note 23 to the financial statements.

Unrestricted income funds comprise those funds which are available for use at the discretion of the directors in furtherance of the general objectives of the charity. Unrestricted funds include designated funds where the directors, at their discretion, have created a fund for specific purposes and a General fund. The aim and use of each designated fund is set out in note 24 to the financial statements.

(c) Income recognition

All income is recognised once the charity has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.

Donations are recognised when the charity have been notified of both the amount and settlement date. In the event that a donation is subject to conditions that require a level of performance before the charity is entitled to the funds, the income is deferred and not recognised until either those conditions are fully met, or the fulfilment of those conditions is wholly within the control of the charity and is probable that those conditions will be fulfilled in the reporting period.

Legacy gifts are recognised on a case by case basis following the granting of probate when the administrator/executor for the estate has communicated in writing both the amount and settlement date. In the event that the gift is in the form of an asset other than cash or a financial asset traded on a recognised stock exchange, recognition is subject to the value of the gift being reliably measurable with a degree of reasonable accuracy and the title to the asset having been transferred to the charity. Where legacies have been notified to the charity, or the charity is aware of the granting of probate, and the criteria for income recognition have not been met, then the legacy is treated as a contingent asset and disclosed if material.

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NOTES TO THE FINANCIAL STATEMENTS - 31[ST] DECEMBER 2021 (continued)

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity; this is normally upon notification of the interest paid or payable by the bank. Dividends are recognised once the dividend has been declared and notification has been received of the dividend due.

Government grant income received from the Coronavirus Job Retention Scheme (Furlough Income) has been recognised in the Statement of Financial Activities in the period to which the underlying furloughed staff costs relate to.

(d) Expenditure recognition and irrecoverable VAT

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that settlement will be required and the amount of the obligation can be measured reliably.

All expenditure is accounted for on an accruals basis. Expenditure is classified under the following activity headings:

All expenses including support cost and governance costs are allocated or apportioned to the applicable activity headings. Support costs are those functions that assist the work of the charity but do not directly undertake charitable activities and in particular those activities of the National office in support of our mission workers overseas and in the UK. Governance costs comprise all costs involved in the public accountability of the charity and its compliance with regulation and good practice. These costs include costs related to statutory audit, board governance meeting costs, together with an apportionment of overhead and support costs.

The charity has a partial exemption for VAT. Irrecoverable VAT is charged as a cost against the activity for which the expenditure was incurred.

(e) Depreciation

Tangible fixed assets with an initial cost in excess of £1,000 are capitalised at cost in the financial statements. The net book value shown at the balance sheet dates are stated at cost less depreciation and provision for impairment in value. Depreciation is provided on tangible fixed assets at the following rates per annum so as to write off each asset over its estimated useful working life:

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

(f) Investments

Investments are stated at their market value at the balance sheet date, any increase or decrease in values being included in the statement of financial activities.

18

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NOTES TO THE FINANCIAL STATEMENTS - 31[ST] DECEMBER 2021 (continued)

(g) Financial instruments

The Charity principally has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments (including debtors and creditors) are initially recognised at transaction value and subsequently measured at their settlement value.

(h) Cash at bank and in hand

Cash at bank and in hand includes cash and deposits which mature within 3 months of the date of opening. The statement of cash flows only reflects movements within bank financial statements held where the money can be accessed within three months of the date of opening the deposit.

Current asset investments represent bank deposits which mature 3 months or less after the date of opening.

(i) Stocks

Stocks are valued at the lower of cost and estimated net realisable value. Net realisable value is based on selling price less all further costs of distribution, marketing and selling.

(j) Operating leases

Rentals payable under operating leases are charged in the statement of financial activities on the straight line basis over the terms of the leases.

(k) Pensions

The charity operates a defined contribution pension scheme on behalf of its employees. The pension cost to the charity is charged to the statement of financial activities on the basis of a constant percentage of employee earnings.

The charity also operates a defined benefit pension scheme for past members of staff. This is an unfunded scheme which exists to ensure that a pension is provided to these past employees in accordance with the charity's past policy on pensions. As all of the scheme's members are now retired and receive pensions directly from the charity, no further contributions are made to the scheme. In respect of this scheme the charity's appointed actuaries have calculated the net present value of the future liabilities payable to the members of the scheme at the balance sheet date. Accordingly a liability is reflected in each of the balance sheets as at 31st December 2021 and 2020.

2 . Income from Donations and legacies

Donations
Legacies
Furlough Grant
Donations and legacies total per SOFA		 2021
2020
£
£
2,096,539
2,234,790
95,402
690,693
20,685
34,785
2,212,626
2,960,268

19

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NOTES TO THE FINANCIAL STATEMENTS - 31[ST] DECEMBER 2021 (continued)

3. Income from charitable activities

Ministry resource sales
Conference income
Independently funded Partners and mid term mission support income
Associates income
Short term mission trip charges
Ancilliary income derived from St John's House
Other income
4.Investment income
Gross income has been generated as follows from:
Investments listed on a recognised stock exchange
Property rental
Bank account and short term deposit interest received
Interest income from Notice accounts >3 months
Loan interest receivable (Visa deposit loan)
5.Analysis of expenditure on raising funds
Direct cost of raising funds
Direct cost of managing & maintaining investments
Governance cost allocation (see note 8)
Support cost allocation (see note 8)

20

DocuSign Envelope ID: 5667BD6C-7C9D-4A7D-8D1F-77F8BAC1EA5E

NOTES TO THE FINANCIAL STATEMENTS - 31[ST] DECEMBER 2021 (continued)

6. Analysis of expenditure on charitable activities

Overseas UK based National Resources &
activities activities Outreach Conferences Total 2021 Total 2020
£ £ £ £ £ £
Direct Staff and related costs 436,231 601,421 115,035 - 1,152,687 1,273,365
Other costs 250,301 126,112 16,254 455 393,122 330,708
Grants paid (see note 9) 10,000 - - 10,000 30,000
Direct project funding 173,875 - - - 173,875 328,018
Conference and event expense - - 1,053 - 1,053 15,308
Cost of GO magazine, prayer
materials, merchandise 4,010 1,974 15,700 4,951 26,635 34,091
Governance costs (see note 8) 16,365 10,291 12,037 1,644 40,337 30,310
Support costs (see note 8) 261,743 164,591 192,520 26,288 645,142 586,053
Total expenditure 2021 1,152,525 904,389 352,599 33,338 2,442,851
Total expenditure 2020 1,325,281 843,721 420,812 38,039 2,627,853

7. Summary analysis of expenditure and related income for charitable activities

This note shows the cost of the main key charitable activities and the sources of income directly to support those activities.

Overseas UK based National Resources &
activities activities Outreach Conferences Total 2021 Total 2020
£ £ £ £ £ £
Total activity costs (per note 6) 1,152,525 904,389 352,599 33,338 2,442,851 2,627,853
Resources & conference income - - - (16,200) (16,200) (28,740)
Ministry fees & charges income (15,968) (2,995) - - (18,963) (15,312)
Other income - (29,746) - - (29,746) (28,502)
Net cost funded from other income 1,136,557 871,648 352,599 17,138 2,377,942 2,555,299

8. Analysis of governance and support costs

The charity initially identifies the costs of its support functions. It then identifies those costs which relate to the governance function, including an allocation of support costs based on apportionment of time spent on governance activity. Having identified its governance costs, the remaining support costs together with the governance costs are apportioned between the key charitable activities undertaken (see note 6) in the year based on an apportionment of staff time, in recognition that the office overhead and administrative costs are broadly related to the allocation of staff resourcing within the National Support Office.

21

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NOTES TO THE FINANCIAL STATEMENTS - 31[ST] DECEMBER 2021 (continued)

8. Analysis of governance and support costs (continued)

The support and governance costs are analysed as follows:

Salaries and related costs
Other Staff costs
Premises Costs
Office administration costs
IT costs
Audit & related fees
Board and sub committee expenses
Depreciation & equipment costs
Other organisational costs
Allocation of support costs to governance
Total 2021 costs
Total 2020 costs		 Support
Governance
Total 2021
2020
£
£
£
£
536,202
-
536,202
437,439
40,623
-
40,623
48,775
24,496
-
24,496
15,970
15,872
-
15,872
15,763
24,874
-
24,874
34,960
-
17,880
17,880
13,414
-
2,250
2,250
1,402
62,591
-
62,591
62,986
19,645
10,237
29,882
35,545
(14,041)
14,041
-
-
710,262
44,408
754,669
633,490
32,764
666,254

9. Analysis of grants

Grants to other organisations and projects totalling £10,000 (2020- £30,000) were made during the year. Details of organisations to which grants paid are detailed below:

Details of organisations to which grants paid are detailed below:
Funded from designated Legacy tithe fund:
Interserve Chile
Interserve India
G2K
10.Net income for the year
This is stated after charging the following:
Depreciation
Audit fee		 2021
2020
£
£
10,000
-
-
20,000
-
10,000
10,000
30,000
2021
2020
£
£
62,591
62,987
16,356
12,760

22

DocuSign Envelope ID: 5667BD6C-7C9D-4A7D-8D1F-77F8BAC1EA5E

NOTES TO THE FINANCIAL STATEMENTS - 31[ST] DECEMBER 2021 (continued)

11. Prior year comparative Statement of Financial Activities

For the Year ended 2020

Income and endowments from:
Donations and legacies
Grants from ISSI and ISI
Charitable activities
Investments
Total
Expenditure on:
Raising funds
Charitable activities
Charitable activities - impairment
Total
Net(losses)/ gains on investments
Net income
Other recognised gains/(losses):
Net movement in funds
Reconciliation of funds:
Total funds brought forward
Total funds carried forward
Actuarial gains on defined benefit pension scheme
Net income before gains / (losses) on
investments		 d
£
£
£
£
2,725,637
234,631
-
2,960,268
72,554
-
-
72,554
-
-
-
-
47,987
-
-
47,987
Unrestricte
funds
Restricted
funds
Endowment
funds
Total funds
2,846,178
234,631
-
3,080,809
76,673
-
76,673
2,358,407
269,446
-
2,627,853
-
-
-
2,435,080
269,446
-
2,704,526
411,098
(34,815)
-
376,283
26,347
(1,439)
(42,611)
(17,703)
437,445
(36,254)
(42,611)
358,580
(32,000)
-
-
(32,000)
405,445
(36,254)
(42,611)
326,580
3,962,453
78,128
423,567
4,464,148
4,367,898
41,874
380,956
4,790,728

23

DocuSign Envelope ID: 5667BD6C-7C9D-4A7D-8D1F-77F8BAC1EA5E

NOTES TO THE FINANCIAL STATEMENTS - 31[ST] DECEMBER 2021 (continued)

12. Analysis of Staff costs and remuneration of key management personnel

Wages and salaries
Social security costs
Staff Defined Contribution Pension Scheme costs
Former Staff Defined Benefit Pension Scheme Costs		 2021
2020
£
£
1,467,194
1,461,025
99,934
94,799
154,263
172,880
1,742
5,327
1,723,133
1,734,031

No employees had employee benefits in excess of £60,000 (2020 - £60,000). Pension costs are allocated to activities in proportion to the related staffing costs incurred and are wholly charged to unrestricted funds.

The directors were not paid or received any other benefits from employment with the charity in the year (2020- nil).

The key management personnel of the charity include the National Director. The total employee benefits of the 6 key management personnel of the charity were £295,545 (2020 - £241,155), including employer national insurance and pension contribution costs.

13. Expenses paid to directors

£1,384 (2020 - £770) was reimbursed to 6 (2020 - 5) directors for travel and related expenses incurred in undertaking activities on behalf of the charity.

14. Employee Numbers and Volunteers

The average number of full time equivalent employees, analysed by time allocation during the year to the key charitable activities, are as shown in the following table:-

charitable activities, are as shown in the following table:-
Raising funds
Overseas activities
UK based activities
National outreach
Resources & conferences		 2021
1
35
24
6
1
67		 2020
1
47
22
5
1
76

The average number of employees (including both UK and overseas Partners) employed during the year were 85 (2020 - 92) comprising 50 full time and 35 part time employees (2020 - full time 62, part time 30).

Volunteers (excluding committee members) gave 120 (2020 - 120) hours of service on the National Office support activities during the year. In addition the work of 14 independently funded Partners (not employees) contributed to the general “front line” charitable activities to varying extents of part time equivalents.

24

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NOTES TO THE FINANCIAL STATEMENTS - 31[ST] DECEMBER 2021 (continued)

15. Related party transactions

Related parties include the charity directors and close relatives and key management personnel. Donations received during the year are:

Trustees and close relatives
Key management personnel and close relatives

16. Tangible fixed assets

Cost
Cost as at 1st January 2021
Disposals in the year
At 31st December 2021
Depreciation and impairments
Accum. dep. at 1st January 2021
Charge in the year
At 31st December 2021
Net book value
At 31st December 2021
Net book value
At 31st December 2020		 F/Hold
property
1,240,554
-
1,240,554
478,254
7,704
485,958
754,596
762,300		 Fixtures
fittings and
equipment
£
429,390
-		 Fixtures
fittings and
equipment
£
429,390
-		 Computers
Total
£
£
125,200
1,795,144
-
-
125,200
1,795,144
60,323
684,197
17,404
62,589
77,727
746,786
47,473
1,048,358
64,877
1,110,948
429,390
145,620
37,481
183,101
246,289
283,771

25

DocuSign Envelope ID: 5667BD6C-7C9D-4A7D-8D1F-77F8BAC1EA5E

NOTES TO THE FINANCIAL STATEMENTS - 31[ST] DECEMBER 2021 (continued) 17. Fixed asset investments

17.Fixed asset investments 17.Fixed asset investments
Market value at 1st January 2021
Net movement on revaluation at 31st December 2021
Market value at 31st December 2021
Historical cost at 31st December 2021		 Investment
property
£
475,444
24,604		 Listed
investments
Total
£
£
740,582
1,216,026
48,067
72,671
500,048 788,649
1,288,697
350,000 361,530
711,530

All investments are held for an investment return and are carried at market value as described below.

The Investment property at year-end comprises one freehold property. It is a residential property in West London which was acquired in 2004 at a value of £350,000 under a Deed of Variation to a Will. The property has a life tenant from whom no rent is received but who is required to ensure that it is adequately insured and maintained at her own expense. This property was valued, by Buntings Chartered Surveyors, as at 31[st] December 2019. The unencumbered market value of the property was £975,000, but after taking into consideration the encumbrance of the life tenancy was valued at £445,000. This valuation has been inflated by the Land Registry House Price Index to give a valuation as at December 2021 of £500,048. Notification has been received post year end of the life tenant wishing to downsize to a smaller property.It is the intention of the charity to sell the property and purchase another.

The listed investments are directly invested on a recognised UK stock exchange and are valued at open market values on 31st December 2021 using the Stock Exchange Daily Official Listing or are invested in open ended collective investment funds valued by the provider in a similar manner. The Sarasin Funds are been managed by WJ Murray who have provided valuation as at 31[st] December 2021.

26

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NOTES TO THE FINANCIAL STATEMENTS - 31[ST] DECEMBER 2021 (continued)

Details of investments representing more than 5% by value of the portfolio are:

M & G Securities Ltd - The Equities Investment Fund
for Charities - "Charifund"13,398 units
M & G Securities Ltd - Charibond Charities Fixed
Interest, Common Investment Fund 77,133 income shares
COIF Charity Funds - Property Fund
117,071.22 income units
Sarasin Alp CIF Income Fund 148,086.07 units
Sarasin Alp CIF Endowment Fund 131,984.23 units
The investments are held for the following funds:
Endowment fund
Restricted Funds
Unrestricted - Designated funds
- General fund
Property - 47 Arlington Road, Ealing,

18. Stock Value

A net holding value of stock for books and other resources available for sale of £21,792 (2020 - £22,437) is held at year-end.

19. Debtors

19.Debtors
Amounts owed by overseas Interserve councils
Income tax recoverable
Accrued income
Prepayments
VAT recoverable
Amounts due from ISSI and ISI
Other debtors		 2021
2020
£
£
94,498
34,082
11,190
7,556
225,471
551,462
43,362
51,278
2,311
185
430,889
323,481
2,656
76,839
810,377
1,044,883		 2020
£
34,082
7,556
551,462
51,278
185
323,481
76,839

Accrued income includes £218,963 legacy income confirmed as owing to Interserve from the estates of deceased under wills, but not yet received by the balance sheet date. After the balance sheet date a further £110,000 legacy income was received but not recognised as at 31 December 2021 as Interserve had not been notified of the amount nor had it met the criteria for income recognition.

27

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NOTES TO THE FINANCIAL STATEMENTS - 31[ST] DECEMBER 2021 (continued)

19. Debtors contd

Amounts due from ISSI and ISI represents the sum of balances collected within the bank accounts to which Interserve Scotland and Ireland and Interserve Ireland have the legal title to. As stated elsewhere in the statements, both of these entities amalgamated their operations with the charity with effect from 1[st] May 2017 and therefore it is considered by all parties to that undertaking, that the net funds of these respective entities at 31[st] December 2021 in substance are held for the benefit of The International Service Fellowship Trust, and accordingly are classified within debtors of this charity.

20. Creditors: amounts falling due within one year

Amounts owed to Interserve International
Expense creditors
Taxation and social security costs
Expense Accruals
Other creditors

28

DocuSign Envelope ID: 5667BD6C-7C9D-4A7D-8D1F-77F8BAC1EA5E

NOTES TO THE FINANCIAL STATEMENTS - 31[ST] DECEMBER 2021 (continued)

21. Defined benefit scheme provision

The Plan is a defined benefit plan operated on behalf of four pensioners who were previously employed by Interserve. In accordance with FRS 102, the net present value of the liabilities payable by Interserve in respect of this pension plan have been calculated as at 31st December for each of the years since 2005.

The benefits are not funded in advance and so no assets are held in a separate trust to meet the payments. The pensions for each of the members are payable for life, but no dependent benefits are payable on death. The pension payable to the four pensioners is increased at the rate of 5% per annum, from which a fixed offset is deducted.

The assumptions used for calculating the liabilities were as follows:

31st December 31st December 31st December 31st December
2021 2020
Discount rate 1.6% p.a. 0.8% p.a.
Mortality assumption 90% S3PFA_L 90% S3PFA_L
CMI 2020 LTR 1.5% CMI 2019 LTR 1.5%
There is no service cost for any of the years since there are no members accruing benefits.
The movement within the statement of financial activities for the year comprised:
31st December
2021 2020
£ £
Change in Defined Benefit Obligation
Beginning Balance (309,000) (299,000)
Interest cost (2,000) (5,000)
Benefits paid 29,000 27,000
Experience gains/(losses) on liabilities 76,000 (14,000)
Changes to demographic assumptions - (2,000)
Changes to financial assumptions 9,000 (16,000)
Closing balance (197,000) (309,000)
Remeasurements over the year
Experience gains/(losses) on liabilities 76,000 (14,000)
(Losses)/gains from changes to demographic assumptions - (2,000)
(Losses)/gains from changes to financial assumptions 9,000 (16,000)
Total remeasurements 85,000 (32,000)
Amounts recognised in the balance sheet
Present value of Scheme liabilities 197,000 309,000
Expense recognised in Profit and Loss
Interest on liabilities 2,000 5,000
2021 2020
Amounts for the current and previous period £ £
Defined benefit obligation (197,000) (309,000)
Experience adjustments on liabilities 85,000 (32,000)

29

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NOTES TO THE FINANCIAL STATEMENTS - 31[ST] DECEMBER 2021 (continued)

22. Endowment fund

The endowment fund arises from an historic appeal by the charity called "Interserve Plus ". The purpose of the appeal was to create a permanent fund, the income of which is included in unrestricted funds and is used for meeting International support costs.

2021 movement
2020 movement		 O/Bal
Gain/ (losses)
C/Bal
01.01.2021
31.12.2021
£
£
£
380,956
35,574
416,530
423,567
(42,611)
380,956

23. Restricted funds

The company holds restricted funds comprising the following unexpended balances of donations held on trust to be applied for specific purposes:

Country Team
Partners Respite
Transmissions
Other Councils
2021 Total		 Balance
01.01.21
£
21,993
5,604
14,277
-
41,874		 Income
£
-
-
125,113
90,154
215,267		 Expenses
£
-
-
(83,721)
(90,154)		 Gains/(losses) Gains/(losses) Gains/(losses) Transfers
£
-
-
-
-
-		 Balance
31.12.21
£
25,125
6,334
55,669
-
£
3,132
730
-
-
3,862
(173,875) 87,128

Fund purposes :

30

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NOTES TO THE FINANCIAL STATEMENTS - 31[ST] DECEMBER 2021 (continued)

24. Designated funds

The income funds of the company include the following designated funds which have been set aside out of unrestricted funds:

unrestricted funds:
Insurance
Legacy & exceptional gift
Legacy tithe
Asset Management Fund
Strategic Development
Fellowship Partner
Property with life tenant
Capital reserve
St Johns House
Kitab new publication fund
Partner resettlement fund
Partner support funds
IFP & OT Plus
2021 Total		 Balance
01.01.2021
£
16,403
928,145
153,720
-
232,867
124,969
475,444
1,110,950
999
28,219
75,672
658,043
4,926		 Income
£
-
-
-
-
-
1,668
-
-
26,363
-
-
1,452,140
38,900		 Expenses
£
-
(15,768)
(10,000)
-
-
(128)
-
(62,591)
(96,763)
-
(24,882)
(1,283,184)
(9,630)
(1,502,946)		 Gains/(losses)
£
-
-
-
-
-
-
24,604
-
-
-
-
-
-
24,604		 Transfers
£
-
(454,590)
9,740
281,572
-
(24,326)
-
-
71,749
-
18,023
(142,778)
(18,113)		 Balance
31.12.2021
£
16,403
457,787
153,460
281,572
232,867
102,183
500,048
1,048,359
2,348
28,219
68,813
684,221
16,083
3,810,357 1,519,071 (258,723) 3,592,363

Fund purposes:

Asset Management Fund - monies designated for the development and maintenance of fixed assets.

Strategic Development - monies designated for use to initiate or support Interserve projects.

31

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NOTES TO THE FINANCIAL STATEMENTS - 31[ST] DECEMBER 2021 (continued)

24. Designated funds (continued)

Partner resettlement - monies set aside to cover the costs of paying partner resettlement allowances at end of final period of service.

Partner support funds - monies carried forward to cover ongoing and future costs of supporting individual Partners.

IFP & OT Plus - monies held for the support of Independently Funded (IFP) and On Track Plus (OT Plus, who are medium term placement) Partners.Where the funds are overdrawn the IFP and OT Plus would pay in the relevant amount to bring the balance back to credit or zero.

Fund transfers in 2021:

Between general fund and designated funds (£258,723):

£95,402 legacy income transferred out from the General fund in to the Legacy & exceptional gift (90%, £85,862) and Legacy tithe (10%, £9,540) funds as per policy.

£186,931 transferred in to the General fund from the Legacy & exceptional gift fund to cover costs of internal development projects , approved operational deficit and sale of Legacy asset.

£160,854 transferred in to the General fund from Partner support funds, being contribution towards the direct support costs of the National Office.

£21,800 transferred in to the General fund from IFP & OT Plus funds, being net contribution towards the direct support costs of the National Office

£2,500 transferred from the General fund to Partner Support Fund

£12,960 transferred from the General Fund into Partner Resttlement Fund

Between specific designated funds:

£5,063 transferred out from the Partner support funds in to the Partner resettlement fund, to provide for payment of allowances at the end of their final term of service to help meet costs of resettling in the UK.

£24,326 transferred out from Fellowship partner fund in to Partner support funds in support of net underfunded Partners costs.

£60,251 transferred out from Legacy & exceptional gift fund in to St John’s House fund for contribution to Operational costs.

£293,069 transferred out from Legacy & exceptional gift fund in to a newly created Asset Management fund

£11,498 transferred out from Asset Management fund in to St John’s House fund for contribution to building costs.

32

DocuSign Envelope ID: 5667BD6C-7C9D-4A7D-8D1F-77F8BAC1EA5E

NOTES TO THE FINANCIAL STATEMENTS - 31[ST] DECEMBER 2021 (continued)

25. Unrestricted- General fund

O/Bal C/Bal
01.01.21 Income Expenses Gains Transfers 31.12.21
£ £ £ £ £ £
2021 General fund 557,541 578,126 (869,364) 93,630 258,723 618,656

All fund transfers in 2021 were between designated funds, details for which are shown under Note 24.

26. Analysis of net assets between funds

Restricted
General
Designated
Total
funds
£
£
£
£
Tangible fixed assets
-
1,048,358
1,048,358
-
Investments
341,003
500,048
841,051
30,985
Current assets
541,580
2,072,485
2,614,065
56,143
Current liabilities
(66,927)
(28,529)
(95,455)
-
Defined benefit scheme provision
(197,000)
-
(197,000)
-
618,656
3,592,363
4,211,019
87,128
Unrealised gains on above
investments
39,600
150,046
189,646
6,319
Reconciliation of unrealised gains/(losses) on investments
Unrealised gains/(losses) at 1st
January 2021
30,970
185,441
216,411
2,457
Gain realised on investment
disposal
(60,000)
(60,000)
Gain/(loss) on revaluation/
disposal in year
8,630
24,605
33,235
3,862
Unrealised gains at 31st December
2021
39,600
150,046
189,646
6,319
Unrestricted funds		 Restricted
General
Designated
Total
funds
£
£
£
£
-
1,048,358
1,048,358
-
341,003
500,048
841,051
30,985
541,580
2,072,485
2,614,065
56,143
(66,927)
(28,529)
(95,455)
-
(197,000)
-
(197,000)
-
Unrestricted funds		 Restricted
General
Designated
Total
funds
£
£
£
£
-
1,048,358
1,048,358
-
341,003
500,048
841,051
30,985
541,580
2,072,485
2,614,065
56,143
(66,927)
(28,529)
(95,455)
-
(197,000)
-
(197,000)
-
Unrestricted funds		 Restricted
General
Designated
Total
funds
£
£
£
£
-
1,048,358
1,048,358
-
341,003
500,048
841,051
30,985
541,580
2,072,485
2,614,065
56,143
(66,927)
(28,529)
(95,455)
-
(197,000)
-
(197,000)
-
Unrestricted funds		 Endowment
Total
fund
funds
£
£
-
1,048,358
416,661
1,288,697
(131)
2,670,077
-
(95,455)
-
(197,000)
618,656 3,592,363
4,211,019		 87,128 416,530
4,714,677
39,600 150,046
189,646		 6,319 82,812
278,777
2,457
3,862		 47,238
266,106
(60,000)
35,574
72,671
39,600
150,046
189,646		 6,319 82,812
278,777

33

DocuSign Envelope ID: 5667BD6C-7C9D-4A7D-8D1F-77F8BAC1EA5E

NOTES TO THE FINANCIAL STATEMENTS - 31[ST] DECEMBER 2021 (continued)

27. Reconciliation of net income to net cash flow from operating activities

Impairment charge
Defined benefit pension scheme interest adjustment
Analysis of changes in net debt
At 1 January
2021
£
Cash at bank and in hand
768,850
Net cash provided by operating activities
Net (Expenditure)/Income for the reporting period (as per the
Adjustments for:
Depreciation charges
(Gains) /Loss on investments
Dividends, interest and rents from investments
Loss on the sale of fixed assets
Decrease/(Increase) in stocks
Decrease(Increase) in debtors
(Decrease)Increase in creditors		 2021
£
(161,051)
62,591
-
(72,671)
(34,928)
-
645
234,505
14,990
(27,000)
17,081
At 31
Cash flows
£
345,564		 2020
£
358,580
62,986
-
17,703
(47,987)
-
(127)
(305,277)
(41,423)
(22,000)
22,455
December
2021
£
1,114,414

28. Analysis of cash and cash equivalents

2021 2020
£ £
Cash in hand 1,114,414 768,850
Total cash and cash equivalents 1,114,414 768,850

29. Corporation Taxation

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

34