2023-03-31-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 2023

Tandem Accounting Chartered Accountants 17 Heathville Road London N19 3AL

ALBANIAN EVANGELICAL MISSION

Annual Report and Financial Statements For the year ended 31 March 2023 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 2023

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 2023

The Trustees submit their annual report and the financial statements of the Albanian Evangelical Mission (“the Charity”) for the year ended 31 March 2023. 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 2023

3. Achievements and Performance

In keeping with the above aims, during the period April 2022 to March 2023, AEM Trustees have: -

financially supported, primarily from restricted funds, three missionary families in south and central Albania. One of these families was in the process of transitioning to the UK and their service in Albania was deemed to be completed by September 2022. In addition, we continue to channel financial support to a retired missionary couple currently living in Canada.
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 (this arrangement changed in January 2023 so that he is now employed by the church in which he works; our preferred pattern).
made further grants, reviewed on an annual basis, and drawn from both restricted gifts and general funds in support of seventeen church workers and national missionaries in Albania and Kosova, as well as the provision of suitable buildings and vehicles 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).
undertaken 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. Officers and/or trustees of the mission visited on eight separate occasions during the period with all in-country partners being seen in-situ at least once.
employed one part-time Finance Officer, a part-time UK Support Co-ordinator and a part-time Deputation and Communications 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 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, we continue to advise our UK supporters of humanitarian needs identified by our Albanian and Kosovan partners. In consequence, we’ve been able to forward 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 nearby 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. We have also forwarded restricted gifts aimed at assisting the payment of medical expenses in urgent cases.

ALBANIAN EVANGELICAL MISSION

Annual Report of the Trustees For the year ended 31 March 2023

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 decreased by £38,278 during the year (2022 increased by £6,202). The balance sheet shows total net assets of £90,488 (2022: £128,766).

Included in total funds are amounts totalling £16,846 (2022: £12,722) 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 2023 the Charity had net free reserves of £73,642 (2022: £116,044) 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	2023	2022 £ 128,766 (12,722)
	£

	90,488
	(16,846)

		116,044
	73,642

		50,000 4,314

	50,000
	806

		54,314
	50,806

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.

ALBANIAN EVANGELICAL MISSION

Annual Report of the Trustees For the year ended 31 March 2023

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
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 05 October 2023 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 2023, 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 23 October 2023

ALBANIAN EVANGELICAL MISSION

Statement of Financial Activities For the year ended 31 March 2023

Unrestricted Funds 2023 £ 95,930 189 53		Unrestricted Funds 2022 £ 95,936 66 2,059	Total 2022 £ 189,843 66 8,007
	Total
	2023
	£

	197,026
	189
	53

96,172		98,061	197,916
	197,268

8,509 130,065 138,574 - (42,402) - - (42,402) 116,044 73,642		3,559 87,229	3,559 188,155

	8,509
	227,037

		90,788	191,714
	235,546


	-

		7,273	6,202
	(38,278)

		- -	- -
	-
	-

		7,273 108,771	6,202 122,564
	(38,278)

	128,766

		116,044	128,766
	90,488

ALBANIAN EVANGELICAL MISSION

Balance Sheet As at 31 March 2023

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 2023 £ 259 259 4,877 70,404 75,281 1,898 73,642 73,642 - 73,642		Restricted Funds 2023 £ - 0 - 16,846 16,846 - 16,846 - 16,846 16,846			Total 2022 £ -
				Total
				2023
				£

				259

						0 2,186 127,422
				259

				4,877
				87,250

						129,608 842
				92,127

				1,898

						128,766
				90,488

						116,044 12,722


				73,642
				16,846

						128,766
				90,488

The financial statements were approved by the Trustees on 05 October 2023 and signed on their behalf by:

Andrew Jones Trustee

ALBANIAN EVANGELICAL MISSION

Notes to the Financial Statements For the year ended 31 March 2023

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 2023

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 2023 £ Voluntary income Donations 90,645 Gift Aid 5,285 95,930 Investment income Bank Interest 189 Other 53 96,172	Restricted Funds 2023 £ 92,926 8,170 101,096 - - 101,096		Total 2022 £ 189,843 8,007
		Total
		2023
		£


		183,571
		13,455

			197,850 66 -
		197,026

		189

		53

			197,916
		197,268

ALBANIAN EVANGELICAL MISSION

Notes to the Financial Statements For the year ended 31 March 2023

3. Expenditure

3a. Expenditure on Raising Funds

Unrestricted Funds 2023 £ Travel 6,962 Conferences 108 Newsletters 1,111 Promotion 211 Literature 117 8,509	Restricted Funds 2023 £ - - - - - 0				Total 2022 £ 2,616 - 943 - -
			Total
			2023
			£

			6,962
			108
			1,111
			211
			117

					3,559
			8,509

3b. Expenditure on Charitable Activities

Unrestricted Funds 2023 £ Direct charitable expenditure Grants & donations (see note 3c) 97,562 Travel overseas 4,757 Staff costs (apportioned) - 102,319 Support costs Staff costs 24,283 Postage, stationery & printing 215 Bank charges 936 Telephone & communications 129 Insurance 495 Payroll & accountancy 440 Depreciation 86 Office sundries 202 26,786 Governance costs Independent examination 960 130,065	Restricted Funds 2023 £ 96,928 - - 96,928 - - 44 - - - - - 44 - 96,972				Total 2022 £ 172,143 606 -
			Total
			2023
			£

			194,491
			4,757
			-

					172,749 12,161 123 1,047 - 478 344 105 248
			199,248

			24,283
			215
			979
			129
			495
			440
			86
			202

					14,506 900
			26,829

			960

					188,155
			227,037

ALBANIAN EVANGELICAL MISSION

Notes to the Financial Statements For the year ended 31 March 2023

3c. Grants and donations

To individuals To organisations	No of separate payments 69 47 116		Total		No of separate payments 51 70 121	Total 2022 £ 59,293 112,850
			2023
			£

			102,514
			91,977

						172,143
			194,491

3d. Staff costs

Included within expenditure are the following staff costs of 3 (2022: 2) employed individuals:

Gross salary		2023 £		2022 £ 11,710


		23,372

4. Tangible Fixed Assets

Cost At 1 April 2022 Additions Disposals At 31 March 2023 Depreciation At 1 April 2022 Charge for Year Disposals At 31 March 2023 Net Book Value At 31 March 2023 At 31 March 2022

		Total
		£

		419
		345
		-

		764


		419
		86
		-

		505


		259

		0

All of the fixed assets are used for charitable purposes.

ALBANIAN EVANGELICAL MISSION

Notes to the Financial Statements For the year ended 31 March 2023

5. Debtors

Prepayments Tax recoverable		2023		2022 £ - 2,186 2,186
		£

		-
		4,877

		4,877

6. Creditors - Amounts Falling Due Within One Year

Other creditors including taxation and social security Accruals		2023		2022 £ - 842 842
		£

		38
		1,860

		1,898

7. Unrestricted Funds

At 1 April 2022 £ 111,730 4,314 116,044	Income £ Expenditure £ 96,172 (135,066) - (3,508) 96,172 (138,574)	Transfers £ - - 0	At 31
			March
			2023
			£

			72,836


			806

			73,642

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 1 April 2021 £ 93,036 15,735 108,771			At 31
			March
			2022
			£

			111,730


			4,314

			116,044

ALBANIAN EVANGELICAL MISSION

Notes to the Financial Statements For the year ended 31 March 2023

8. Restricted Funds

At 1 April 2022 £ 851 1,029 10,457 385 12,722	Income £ Expenditure £ 5,200 (5,750) 31,519 (27,332) 41,416 (40,544) 22,961 (23,346) 101,096 (96,972)	Transfers £ - - - - 0	At 31
			March
			2023
			£

			301
			5,216
			11,329
			0

			16,846

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)	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

Descriptions of the restricted funds are as follows:

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: £10,567 (2022: 2: £4,847).

The Trustees gave a total of £4,730 (2022: £4,470) to the charity during the year.