2022-03-31-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 2022

Tandem Accounting Chartered Accountants 17 Heathville Road London N19 3AL

ALBANIAN EVANGELICAL MISSION

Annual Report and Financial Statements For the year ended 31 March 2022 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 2022

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
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
	Tandem Accounting Limited
	17 Heathville Road
	London N19 3AL

ALBANIAN EVANGELICAL MISSION

Annual Report of the Trustees For the year ended 31 March 2022

The Trustees submit their annual report and the financial statements of the Albanian Evangelical Mission (“the Charity”) for the year ended 31 March 2022. 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 2022

3.Achievements and Performance

In keeping with the above aims, during the period April 2021 to March 2022, AEM Trustees have:-

financially supported from their restricted and general funds four 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 funded the full-time employment of one church leader via 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).
resumed monitoring and support visits to Albania and Kosova. It remains the policy of the mission to encourage the work and life of our partner churches and organisations through regular visits to the region and, although Covid restrictions remained an obstacle for the period April to September 2021, it has been possible for officers and/or trustees of the mission to resume visits on four separate occasions to the end of March 2022.
employed one part-time Finance Officer and newly recruited two part-time staff in the form of a UK Support Co-ordinator (appointed Sept 2021) and a Deputation and Communications Officer (Appointed January 2022). 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 and digital media.

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 continue to receive funds as restricted gifts in support of a Boys’ Residential Home in Maliq (S.E.Albania), now controlled and run by ‘Hands of Providence’, a registered charitable foundation in Albania. Funds are additionally sent in support of a children’s ‘Day Centre’ in Libonik (also in S.E.Albania). 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’. AEM has continued to receive restricted gifts for the relief of poverty and the continuing effects of earthquake and pandemic. These are passed on in full as needs are identified by our partners in the Balkan region. We have also forwarded restricted gifts aimed at assisting the payment of medical expenses in urgent cases.

4. Financial Review

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

4.1 Financial Activity and Financial Position

ALBANIAN EVANGELICAL MISSION

Annual Report of the Trustees For the year ended 31 March 2022

The Statement of Financial Activities and Balance Sheet can be found on pages 8 and 9 respectively. The Charity’s reserves increased by £6,202 during the year (2021 increased by £23,783). The balance sheet shows total net assets of £128,766 (2021: £122,564).

Included in total funds are amounts totalling £12,722 (2021: £13,793) 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.

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 2022 the Charity had net free reserves of £116,044 (2021: £108,771) 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	2022	2021 £ 122,564 (13,793)
	£

	128,766
	(12,722)

		108,771
	116,044

		50,000 15,735

	50,000
	4,314

		65,735
	54,314

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. 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

ALBANIAN EVANGELICAL MISSION

Annual Report of the Trustees For the year ended 31 March 2022

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.

7. Approval

The report of the Trustees was approved by the Trustees on 21 October 2022 and signed on their behalf by:

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 2022, 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 2022

ALBANIAN EVANGELICAL MISSION

Statement of Financial Activities For the year ended 31 March 2022

Unrestricted Funds 2022 £ 95,936 66 2,059		Unrestricted Funds 2021 £ 107,145 84 -	Total 2021 £ 194,191 84 -
	Total
	2022
	£

	189,843
	66
	8,007

98,061		107,229	194,275
	197,916

3,559 87,229 90,788 - 7,273 - - 7,273 108,771 116,044		1,287 76,748	1,287 169,205

	3,559
	188,155

		78,035	170,492
	191,714


	-

		29,194	23,783
	6,202

		- -	- -
	-
	-

		29,194 79,577	23,783 98,781
	6,202

	122,564

		108,771	122,564
	128,766

ALBANIAN EVANGELICAL MISSION

Balance Sheet As at 31 March 2022

Note Fixed Assets Tangible Assets 4 Current Assets Debtors 5 Cash At Bank And In Hand Creditors - Amounts Falling Due Within One Year 6 Net Assets Represented By: Unrestricted Income Funds 7 Restricted Funds 8 Total Funds	Unrestricted Funds 2022 £ - 0 2,186 114,700 116,886 842 116,044 116,044 - 116,044		Restricted Funds 2022 £ - 0 - 12,722 12,722 - 12,722 - 12,722 12,722			Total 2021 £ 105
				Total
				2022
				£

				-

						105 3,934 119,425
				0

				2,186
				127,422

						123,359 900
				129,608

				842

						122,564
				128,766

						108,771 13,793


				116,044
				12,722

						122,564
				128,766

The financial statements were approved by the Trustees on 21 October 2022 and signed on their behalf by:

Andrew Jones Trustee

ALBANIAN EVANGELICAL MISSION

Notes to the Financial Statements For the year ended 31 March 2022

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 2022

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 2022 £ Voluntary income Donations 95,936 Gift Aid 2,059 Legacy - 97,995 Investment income Bank Interest 66 98,061	Restricted Funds 2022 £ 93,907 5,948 - 99,855 - 99,855		Total 2021 £ 185,353 8,838 -
		Total
		2022
		£


		189,843
		8,007
		-

			194,191 84
		197,850

		66

			194,275
		197,916

3. Expenditure

3a. Expenditure on Raising Funds

Unrestricted Funds 2022 £ Travel 2,616 Newsletters 943 3,559	Restricted Funds 2022 £ - - 0				Total 2021 £ 683 604
			Total
			2022
			£

			2,616
			943

					1,287
			3,559

ALBANIAN EVANGELICAL MISSION

Notes to the Financial Statements For the year ended 31 March 2022

3b. Expenditure on Charitable Activities

Unrestricted Funds 2022 £ Direct charitable expenditure Grants & donations (see note 3c) 71,279 Travel overseas 606 Staff costs (apportioned) - 71,885 Support costs Staff costs 12,161 Postage, stationery & printing 123 Bank charges 985 Telephone & communications - Insurance 478 Payroll & accountancy 344 Depreciation 105 Office sundries 248 14,444 Governance costs Independent examination 900 87,229 3c. Grants and donations No of separate payments To individuals 51 To organisations 70 121		Restricted Funds 2022 £ 100,864 - - 100,864 - - 62 - - - - - 62 - 100,926
				Total
				2022
				£

				172,143
				606
				-

				172,749

				12,161
				123
				1,047
				-
				478
				344
				105
				248

				14,506

				900

				188,155


		Total
		2022
		£

		59,293
		112,850

		172,143

3d. Staff costs

Included within Expenditure are the following staff costs of 2 (2021: 1) employed individuals:

Gross salary		2022		2021 £ 1,936
		£

		11,710

ALBANIAN EVANGELICAL MISSION

Notes to the Financial Statements For the year ended 31 March 2022

4. Tangible Fixed Assets

Cost At 1 April 2021 Additions Disposals At 31 March 2022 Depreciation At 1 April 2021 Charge for Year Disposals At 31 March 2022 Net Book Value At 31 March 2022 At 31 March 2021

		Total
		£

		419
		-
		-

		419


		314
		105
		-

		419


		0

		105

All of the fixed assets are used for charitable purposes.

5. Debtors

Prepayments Tax recoverable		2022		2021 £ - 3,934
		£

		-
		2,186

				3,934
		2,186

6. Creditors - Amounts Falling Due Within One Year

Other creditors including taxation and social security Accruals		2022		2021 £ - 900
		£

		-
		842

				900
		842

ALBANIAN EVANGELICAL MISSION

Notes to the Financial Statements For the year ended 31 March 2022

7. Unrestricted Funds

At 1 April 2021 £ 93,036 15,735 108,771	Income £ Expenditure £ 98,061 (79,367) - (11,421) 98,061 (90,788)	Transfers £ - - 0	At 31
			March
			2022
			£

			111,730


			4,314

			116,044

At 1 April 2019 £ 52,433 27,144 79,577	Income £ Expenditure £ 107,525 (66,922) - (11,409) 107,525 (78,331)	Transfers £ - - 0
At 1 April 2019 £ 52,433 27,144 79,577			At 31
			March
			2021
			£

			93,036


			15,735

			108,771

8. Restricted Funds 8a Current year Churches Local workers Missionaries Other projects		At 1 April 2021 £ 1,561 1,405 10,597 230 13,793	At 1 April 2021 £ 1,561 1,405 10,597 230 13,793	Income £ Expenditure £ 6,932 (7,642) 17,479 (17,855) 49,659 (49,799) 25,785 (25,630) 99,855 (100,926)	Income £ Expenditure £ 6,932 (7,642) 17,479 (17,855) 49,659 (49,799) 25,785 (25,630) 99,855 (100,926)	Transfers £ - - - - 0
		At 1 April 2021 £ 1,561 1,405 10,597 230 13,793						At 31
								March
								2022
								£

								851
								1,029
								10,457
								385

								12,722

ALBANIAN EVANGELICAL MISSION

Notes to the Financial Statements For the year ended 31 March 2022

8. Restricted Funds (continued)

8b Prior year Churches Local workers Missionaries Other projects		At 1 April 2019 £ 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

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 3: £4,847 (2021: 2: £683).

The Trustees gave a total of £4,470 (2021: £3,035) to the charity during the year.