2021-03-31-accounts - Albanian Evangelical Mission

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ALBANIAN EVANGELICAL MISSION

Charity Registration Number: 1036807

Annual Report and Financial Statements

For the year ended 31 March 2021

Simply Churches Chartered Accountants 17 Heathville Road London N19 3AL

ALBANIAN EVANGELICAL MISSION

Annual Report and Financial Statements For the year ended 31 March 2021 Contents

	Page
Legal & administrative information	2
Annual Report of the Trustees	3
Independent Examiner's report to the Trustees	7
Statement of financial activities	8
Balance sheet	9
Notes to the financial statements	10

ALBANIAN EVANGELICAL MISSION

Legal & administrative information For the year ended 31 March 2021

Charity Name Albanian Evangelical Mission Charity Registration no. 1036807. The Charity was registered with the Charity Commission on 25 April 1994 Registered Office The Old Stables, Church Walk, High St, Ixworth, Bury St Edmunds, Suffolk. IP31 2HH Governing Document The Charity’s governing document is the Declaration of Trust dated 10 March 1994 as amended by supplemental deed dated 25 July 2002. Objectives The objectives of Albanian Evangelical Mission are stated as follows: A. The advancement of the Christian religion amongst Albanians. B. The relief of persons in conditions of hardship or who are aged or sick amongst Albanians. Trustees The Trustees who served during the year and who were serving at the date of this report were: Dr Graham Eldridge Rev Peter Cresswell Chairman Mr Andrew Jones Treasurer Mr Mark Jackson Mrs Anne Jones Mr Paul Stark Appointed xxxxxx Key Management Personnel Those in charge of directing, controlling, running and operating the Charity on a day to day basis are the Trustees together with Paul Davies the Director of Ministry. Bankers Barclays Bank 1 Churchill Place London E14 5HP Independent Examiner John Helm ACA Simply Churches Limited 17 Heathville Road London N19 3AL

ALBANIAN EVANGELICAL MISSION

Annual Report of the Trustees For the year ended 31 March 2021

The Trustees submit their annual report and the financial statements of the Albanian Evangelical Mission (“the Charity”) for the year ended 31 March 2021. The financial statements have been prepared in the format prescribed by the Statement of Recommended Practice: Accounting and Reporting by Charities (SORP2015 (FRS102)) and the Financial Reporting Standard 102. The legal and administrative information set out earlier in this document forms part of this report.

1. Structure, Governance & Management

1.1. Trustees

Individuals who share the aims and objectives of the charity are invited to serve as trustees provided they also have the necessary experience to fulfil their duties as trustees.

The induction process for any individual newly-appointed to the board of Trustees comprises an initial meeting with at least two of the Trustees (whenever possible one of these two Trustees being the Chair) and receipt of copies of:

the Trust Deed
the most recent financial statements
the Charity Commission’s guidance ‘The Essential Trustee’.

The Trustees meet at regular intervals (currently twice per annum) to consider the direction of the charity and to review its financial position. Current reports of income and expenditure are presented for consideration by the trustees as a body.

The Trustees have appointed an executive director to carry out the trustees' strategy, aims and objectives. The director is required to report on progress to the trustees at each trustees meeting. The Trustees meet bi-annually to discuss a full range of matters relating to strategy, project work, recruitment, finance and general administration.

1.2 Risk Management

The Trustees acknowledge that they have a responsibility for the identification and proper management of risks faced by the Charity in achieving its primary aims. The Trustees have therefore assessed the major risks to which the Charity is exposed, in particular those relating to the specific operational areas of the Charity and its finances. The Trustees believe that, by monitoring reserve levels, by developing controls over key financial systems, and by having the operational risks faced by the Charity reviewed, they have established systems and procedures to mitigate those risks.

2. Activities & Public Benefit

The Charity’s objectives benefit the public through:
The encouragement of Charity communities which in turn practise care, compassion and honesty within their wider communities.
The provision of activities which benefit the wider community such as children’s clubs and summer camps.
The provision, where appropriate, of community facilities such as a children’s safe house.

The trustees’ of AEM take the ongoing witness to the truth of the Christian gospel and the encouragement of church life amongst Albanian people to be their priorities. They also accept the responsibility of supporting Albanian churches in their desire to foster community and relieve suffering from poverty and neglect in their localities. In keeping with these aims they believe it proper to maintain a small organisation in the UK with the primary role of informing and encouraging links between UK churches and their Albanian counterparts.

ALBANIAN EVANGELICAL MISSION

Annual Report of the Trustees For the year ended 31 March 2021

3. Achievements and Performance

In keeping with the above aims, during the period April 2020 to March 2021, AEM Trustees have:

financially supported from their restricted and general funds, three missionary families in south and central Albania.
made grants to our sister organisation, registered in Albania as AEM-Misioni Ungjillor, to facilitate a permanent office in Tirana and the employment of an administrator. In addition AEM funds the full-time employment of one church leader by AEM-Misioni Ungjillor.
made further grants, reviewed on an annual basis, and drawn from both restricted gifts and general funds in support of eighteen church workers and national missionaries in Albania and Kosova, as well as the provision of suitable buildings for church activities. It is current practice, where possible, to provide grants to churches from our General Fund to augment the gifts received through us, by our Albanian partners, from UK based churches and individuals. This allows partner churches to make local decisions about their needs (including staff and buildings – the most significant expense of most churches). It remains the policy of the mission to monitor and support the work and life of our partner churches and organisations through regular visits to the region. Sadly, travel restrictions have meant that no visits have taken place since October 2019 although it has been possible to maintain close contact via electronic media.
• employed one part-time Finance Officer. Other UK based roles have been performed on a voluntary basis. Funds continue to be deployed to facilitate the flow of information to UK churches and individuals through publications, a website and representative visits.
begun seeking possible recruits for part-time, employed roles as mission representatives in the UK.

In addition to the above, AEM Trustees have made grants in support of ministry projects and church based activities encompassing the following:

Provision of summer camps and year-round outreach activities involving children, youth and university/college students.
• Preparation and publication of literature, including books, flyers, newspapers and calendars, useful to missionaries and churches in their outreach and the encouragement of church life.
Conferences and seminars organised by AEM and its associates for the encouragement and training of workers.

Finally and primarily based on restricted gifts, the trustees have been pleased to support the humanitarian efforts of Albanian churches, encouraged by the example of the Lord Jesus Christ himself and the desire of individuals and churches in the UK to respond to needs as they are identified and publicised in the UK by AEM. We have continued to receive funds from restricted gifts in support of a Boys’ Residential Home in Maliq, now controlled and run by Fondacion Kenedi in Korҫë. Funds are additionally sent in support of a children’s ‘Day Centre’ in Libonik. AEM also partners with the registered Albanian, Christian charity ‘Light for the Blind’ (Dritë për të Verbërit) and supports its work from both restricted and general funds. Currently this support takes the main form of an annual salary payment to the charity’s executive officer as well as subsidies to enable an annual ‘Blind Camp’. Approximately £5,175, raised through restricted gifts, has been sent to Albania to support victims of Covid-19 and their families.

4. Financial Review

Funding for the Charity comes mainly from donations from churches and individuals.

4.1 Financial Activity and Financial Position

The Statement of Financial Activities and Balance Sheet can be found on pages 8 and 9 respectively. The Charity’s reserves increased by £23,783 during the year (2020 – decreased by £6,674). The balance sheet shows total net assets of £122,564 (2020: £98,781).

Included in total funds are amounts totalling £13,793 (2020: £79,577) which are restricted. These monies have either been raised for, and their use restricted to, specific purposes, or they comprise grants subject to grantor imposed conditions. Full details of these restricted funds can be found in note 8 to the accounts together with an analysis of movements in the year.

ALBANIAN EVANGELICAL MISSION

Annual Report of the Trustees For the year ended 31 March 2021

4.2 Reserves Policy

The Trustees have examined the requirements for free reserves, ie those unrestricted funds not invested in tangible fixed assets. The Trustees consider that, given the nature of the Charity’s funding, free reserves should be equivalent to approximately 6 months’ worth of unrestricted routine expenditure in order to provide sufficient flexibility to cover temporary shortfalls in income and allow the Charity to cope and respond to unforeseen emergencies whilst specific action plans are implemented. At 31 March 2021 the Charity had net free reserves of £108,771 (2020: £79,577) as follows:

Total reserves Less: restricted funds Free reserves Free reserves requirement: 6 month’s budgeted routine expenditure Designated for the building of a boys’ refuge home Free reserves	2021	2020 £ 98,781 (19,204)
	£

	122,564
	(13,793)

		79,577
	108,771

		30,000 27,144

	50,000
	15,735

		57,144
	65,735

Trustees are aware that they are currently holding reserves well above the previous norm, the result of significant legacies and also a policy of reserving some funds to meet future employment needs. It is anticipated that the reserve held will gradually return to parity as and when appointments are made.

5. Plans for Future Periods

The mission’s spending policies and plans for reserve funds remain fundamentally unchanged.

6. Going Concern Review

The significant events to have occurred prior to the signing of these accounts have been the ongoing lockdown restrictions made necessary by the COVID-19 pandemic, since early March 2020.

Each year it’s the trustees’ responsibility to state whether or not the annual accounts have been drawn up on a going concern basis (see the accounting policy note on page 10). Going concern is the assumption that an entity, in this case the charity, has the resources (financial or otherwise) needed to continue operating for the foreseeable future and, in particular, for at least 12 months from the date of approval by the trustees of these annual accounts. If the going concern principle did not apply, then the accounts would be drawn up on an insolvent basis.

Clearly, as part of this year’s going concern review, the trustees have had to consider the continuing impact of the COVID19 pandemic on the charity’s operations. They have concluded that the financial risks to those operations remain significant, but there is still no evidence that funds will be significantly diminished. Our dependency on the ability of churches and individuals to maintain their current level of giving would suggest a possible fall in donations but the mission’s experience since restrictions began does not suggest any alarm. Income may well fall in the short term but the manner in which funds come to us is far less predictable than simply to be linked with a wider economic downturn. To date no notifications have been received from churches or individuals that they will be withdrawing or reducing their financial support. We recognise that uncertainty is likely to continue into 2022.

Against this background, the trustees will keep the financial forecast for 2022 under regular review, aware that if the charity incurs a deficit, its cash reserves are currently at least twice the figure usually set and are more than adequate to absorb that deficit. We therefore conclude that it is appropriate to prepare the 2021 Accounts on a going-concern basis and that

ALBANIAN EVANGELICAL MISSION

Annual Report of the Trustees For the year ended 31 March 2021

it is not necessary to make any adjustment to these accounts as a result of any ongoing restrictions. Trustees will, of course continue to monitor the situation.

7. Responsibilities of Trustees for the Financial Statements

The Trustees are responsible for preparing the report and the financial statements in accordance with applicable law and United Kingdom Generally Accepted Accounting Practice. Charity law in England and Wales requires the Trustees to prepare financial statements for each financial period which give a true and fair view of the state of affairs of the Charity and of the income and expenditure of the Charity for that period.

In preparing those financial statements, the Trustees are required to:

select suitable accounting policies and apply them consistently;
observe the methods and principles of the Charities SORP;
make judgements and estimates that are reasonable and prudent;
state whether applicable accounting standards have been followed, subject to any departures disclosed and explained in the financial statements; and
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the activities of the Charity will continue.

The Trustees are responsible for keeping adequate accounting records which disclose with reasonable accuracy at any time the financial position of the Charity and enables them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the governing document. The Trustees are also responsible for safeguarding the assets of the Charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. The Trustees are responsible for the maintenance and integrity of the Charity and financial information included in the Charity’s website.

8. Approval

The report of the Trustees was approved by the Trustees on 21 October 2021 and signed on their behalf by:

eM Peter Cresswell Trustee

ALBANIAN EVANGELICAL MISSION

Report of the Independent Examiner to the Trustees of Albanian Evangelical Mission

I report on the financial statements of Albanian Evangelical Mission for the year ended 31 March 2021, set out on pages 8 to 15.

This report is made solely to the Trustees in accordance with section 145 of the Charities Act 2011 (“the Act”). My independent examination has been undertaken so that I might state to the Trustees those matters I am required to state to them in an independent examiner’s report and for no other purpose. To the fullest extent permitted by the law, I do not accept responsibility to anyone other than the Trust and the Trustees for my independent examination, for this report, or the opinions I have formed.

RESPECTIVE RESPONSIBILITIES OF TRUSTEES AND EXAMINER

The Trustees considers that an audit is not required for this year (under section 144(2) of the Act) and that an independent examination is needed.

It is my responsibility to:

Examine the accounts (under section 145 of the Act);
To follow the procedures laid down in the General Direction given by the Charity Commission (under section 145(5)(b) of the Act); and
To state whether particular matters have come to my attention.

BASIS OF INDEPENDENT EXAMINER’S STATEMENT

My examination was carried out in accordance with General Directions given by the Charity Commissioners. An examination includes a review of the accounting records kept by the charity and a comparison of the accounts presented with those records. It also includes consideration of any unusual items or disclosures in the accounts, and seeking explanations from the Trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit, and consequently I do not express an audit opinion on the accounts.

INDEPENDENT EXAMINER’S STATEMENT

I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:

accounting records were not kept in respect of the church as required by section 130 of the Act; or
the accounts do not accord with those records; or
the accounts do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a ‘true and fair view’ which is not a matter considered as part of an independent examination.

I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.

John Helm ACA 21 October 2021

ALBANIAN EVANGELICAL MISSION

Statement of Financial Activities For the year ended 31 March 2021

Unrestricted Funds 2021 £ 107,145 84 -		Unrestricted Funds 2020 £ 103,499 235 -	Total 2020 £ 202,724 235 -
	Total
	2021
	£

	194,191
	84
	-

107,229		103,734	202,959
	194,275

1,287 76,748 78,035 - 29,194 - - 29,194 79,577 108,771		18,087 91,896	18,087 191,546

	1,287
	169,205

		109,983	209,633
	170,492


	-

		(6,249)	(6,674)
	23,783

		- -	- -
	-
	-

		(6,249) 85,826	(6,674) 105,455
	23,783

	98,781

		79,577	98,781
	122,564

ALBANIAN EVANGELICAL MISSION

Balance Sheet As at 31 March 2021

		Unrestricted	Restricted
		Funds	Funds	Total	Total
	Note	2021	2021	2021	2020
		£	£	£	£
Fixed Assets
Tangible Assets	4	105	-	105	209
		105	0	105	209
Current Assets
Debtors	5	1,548	2,386	3,934	3,459
Cash At Bank And In Hand		108,018	11,407	119,425	97,056
		109,566	13,793	123,359	100,515
Creditors - Amounts Falling Due
Within One Year	6	900	-	900	1,943
Net Assets		108,771	13,793	122,564	98,781
Represented By:
Unrestricted Income Funds	7	108,771	-	108,771	79,577
Restricted Funds	8	-	13,793	13,793	19,204
Total Funds		108,771	13,793	122,564	98,781

The financial statements were approved by the Trustees on 21 October 2021 and signed on their behalf by:

Andrew Jones Trustee

ALBANIAN EVANGELICAL MISSION

Notes to the Financial Statements For the year ended 31 March 2021

1. Accounting Policies

The principal accounting policies adopted, judgements and key sources of estimation uncertainty in the preparation of the financial statements are as follows:

Basis of accounting

The financial statements have been prepared under the Charities Act 2011 and in accordance with the Charities Statement of Recommended Practice (Charities SORP (FRS 102)) and Financial Reporting Standard 102 (FRS 102). The financial statements are drawn up on the historical cost basis of accounting.

The Charity meets the definition of a public benefit entity under FRS 102.

Going Concern

There are no material uncertainties about the charity’s ability to continue as a going concern and accordingly the accounts have been drawn up on a going concern basis.

Income recognition

Voluntary income and donations (including legacies) are accounted for once the Charity has entitlement to the income, it is probable the income will be received and the amount of income receivable can be reliably measured. Income from the recovery of tax on gift aided donations is accounted for in the period to which the relevant donation is received. Grant income is recognised on a receivable basis.

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.

Expenditure recognition

Expenditure is accrued as soon as a liability is considered probable, and the amount of obligation can be measured reliably. Longer term liabilities are discounted to present value. The Charity is not registered for VAT and accordingly expenditure includes VAT where appropriate.

Expenditure included in Raising Funds includes amounts incurred in obtaining grants and other donations.

Charitable expenditure includes those costs in fulfilling the Charity’s principal objects, as outlined in the Report of the Trustees. These include grants payable and governance costs:

Grants payable are payments made to third parties in furtherance of the Charity’s objects. In the case of an unconditional grant offer this is accrued once the recipient has been notified of the grant award. The notification gives the recipient a reasonable expectation that they will receive the grant. Grants awards that are subject to the recipient fulfilling performance conditions are only accrued when the recipient has been notified of the grant and any remaining unfulfilled condition attaching to that grant is outside of the control of the Charity.
Governance costs comprise all costs involving the public accountability of the Charity and its compliance with regulation and good practice. These costs include costs related to the independent examination and legal fees.

The Charity contributes to one employee’s personal pension plan. This is a defined contribution scheme, the assets of which are held separately from those of the Charity. The cost in the accounts is the amount of contributions paid and payable during the year.

Tangible Fixed Assets

The cost of equipment, less any expected residual value, is depreciated on a straight line basis over the effective useful life of the asset, which has been estimated as four years.

Debtors

Debtors are included at the settlement amount due. Prepayments are valued at the amount prepaid.

ALBANIAN EVANGELICAL MISSION

Notes to the Financial Statements For the year ended 31 March 2021

1. Accounting Policies (continued)

Cash at bank and in hand

Cash at bank and in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of opening of the deposit.

Creditors and provisions

Creditors and provisions are recognised where the charity has a present obligation arising from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are recognised at their settlement amount.

Fund accounting

The funds held by the charity are either:

Unrestricted general funds - these are funds which can be used in accordance with the charitable objects at the discretion of the trustees.
Restricted funds - these are funds that can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.

2. Income

2. Income
Unrestricted Funds 2021 £ Voluntary income Donations 103,698 Gift Aid 3,447 Legacy - 107,145 Investment income Bank Interest 84 107,229	Restricted Funds 2021 £ 81,655 5,391 - 87,046 - 87,046		Total 2020 £ 193,727 8,997 -
		Total
		2021
		£


		185,353
		8,838
		-

			202,724 235
		194,191

		84

			202,959
		194,275

3. Expenditure

3a. Expenditure on Raising Funds

Unrestricted Funds 2021 £ Staff costs (apportioned on time basis) - Travel 683 Newsletters 604 Promotion - 1,287	Restricted Funds 2021 £ - - - - 0				Total 2020 £ 11,236 3,207 2,490 1,154
			Total
			2021
			£

			-
			683
			604
			-

					18,087
			1,287

ALBANIAN EVANGELICAL MISSION

Notes to the Financial Statements For the year ended 31 March 2021

3b. Expenditure on Charitable Activities

Unrestricted Funds 2021 £ Direct charitable expenditure Grants & donations (see note 3c) 72,050 Travel overseas (295) Staff costs (apportioned) - 71,755 Support costs Staff costs 1,936 Postage, stationery & printing 150 Bank charges 893 Telephone & communications - Insurance 461 Payroll & accountancy 279 Depreciation 104 Office sundries 270 4,093 Governance costs Independent examination 900 76,748 3c. Grants and donations No of separate payments To individuals 67,603 To organisations 96,885 164,488		Restricted Funds 2021 £ 92,438 - - 92,438 - - 19 - - - - - 19 - 92,457
				Total
				2021
				£

				164,488
				(295)
				-

				164,193

				1,936
				150
				912
				-
				461
				279
				104
				270

				4,112

				900

				169,205


		Total
		2021
		£

		61
		65

		126

3c. Grants and donations

3d. Staff costs

Included within Expenditure are the following staff costs of 1 (2020: 2) employed individuals:

Gross salary		2021		2020 £ 14,498
		£

		1,936

ALBANIAN EVANGELICAL MISSION

Notes to the Financial Statements For the year ended 31 March 2021

4. Tangible Fixed Assets

Cost At 1 April 2020 Additions Disposals At 31 March 2021 Depreciation At 1 April 2020 Charge for Year Disposals At 31 March 2021 Net Book Value At 31 March 2021 At 31 March 2020

		Total
		£

		419
		-
		-

		419


		210
		104
		-

		314


		105

		209

All of the fixed assets are used for charitable purposes.

5. Debtors

Prepayments Tax recoverable		2021		2020 £ - 3,459
		£

		-
		3,934

				3,459
		3,934

6. Creditors - Amounts Falling Due Within One Year

Other creditors including taxation and social security Accruals		2021		2020 £ - 1,943
		£

		-
		900

				1,943
		900

ALBANIAN EVANGELICAL MISSION

Notes to the Financial Statements For the year ended 31 March 2021

7. Unrestricted Funds

At 1 April 2020 £ 52,433 27,144 79,577	Income £ Expenditure £ 107,525 (66,922) - (11,409) 107,525 (78,331)	Transfers £ - - 0	At 31
			March
			2021
			£

			93,036


			15,735

			108,771

At 1 April 2019 £ 39,955 45,871 85,826	Income £ Expenditure £ 103,734 (91,256) - (18,727) 103,734 (109,983)	Transfers £ - - 0
At 1 April 2019 £ 39,955 45,871 85,826			At 31
			March
			2020
			£

			52,433


			27,144

			79,577

8. Restricted Funds

8a Current year Churches Local workers Missionaries Other projects		At 1 April 2020 £ 1,401 2,809 13,994 1,000 19,204		Income £ Expenditure £ 7,567 (7,407) 17,524 (18,928) 48,642 (52,039) 13,313 (14,083) 87,046 (92,457)	Income £ Expenditure £ 7,567 (7,407) 17,524 (18,928) 48,642 (52,039) 13,313 (14,083) 87,046 (92,457)	Transfers £ - - - - 0		At 31
								March
								2021
								£

								1,561
								1,405
								10,597
								230

								13,793

ALBANIAN EVANGELICAL MISSION

Notes to the Financial Statements For the year ended 31 March 2021

8. Restricted Funds (continued)

8b Prior year Churches Local workers Missionaries Other projects		At 1 April 2019 £ 1,565 1,130 16,663 271 19,629		Income £ Expenditure £ 8,542 (8,706) 29,023 (27,344) 50,661 (53,330) 10,999 (10,270) 99,225 (99,650)	Income £ Expenditure £ 8,542 (8,706) 29,023 (27,344) 50,661 (53,330) 10,999 (10,270) 99,225 (99,650)	Transfers £ - - - - 0		At 31
								March
								2020
								£

								1,401
								2,809
								13,994
								1,000

								19,204

Churches : income received specifically for Churches in Albania and Kosova

Local workers : income received specifically for local workers in Albania and Kosova

Missionaries : income received specifically for missionaries working in Albania and Kosova

Other projects : income received specifically for other projects in Albania and Kosova

9. Related Party Transactions

The number of trustees and key management personnel who were paid travel and out of pocket expenses on charity business was 2: £683 (2020: 2: £1,146).

The Trustees gave a total of £3,035 (2020: £2,760) to the charity during the year.