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← Philadelphia Church Of God

2020-12-31-accounts

COMPANY REGISTRATION NUMBER: 05314410

CHARITY REGISTRATION NUMBER: 1044860

PHILADELPHIA CHURCH OF GOD

TRUSTEE’S ANNUAL REPORT AND ACCOUNTS FOR THE YEAR ENDED 31ST DECEMBER 2020

1

PHILADELPHIA CHURCH OF GOD

COMPANY LIMITED BY GUARANTEE

COMPANYLIMITED BYG UARANTEE
Page
Board of Trustee’s Report 3
Independent Examiner’s Report 12
Statement of Financial Activities 13
Statement of Financial Position 14
Cash Flow Statement 15
Notes to the Financial Statements 16

2

Board of Trustee’s Report

The trustees, who are also the directors for the purposes of company law, present their report and the financial statements of the charity for the Year ended 31 December 2020.

Reference and administrative details

Registered charity name: Philadelphia Church of God Charity registration number: 1044860 Company registration number: 05314410 Principal office and registered office: Edstone Hall Wootton Wawen Henley in Arden Warwickshire B95 6DD England The trustees: Mr Gerald Flurry Mr Andrew Locher Mr Brent Nagtegaal Mr Alexander Harrison (resigned 22[nd] Nov 2020) Mr Waduthanthrige Dinesh Sanjeewa Perera

Company secretary: David Calvert Howard Accountants: Cullingworth & Co Limited Chartered Certified Accountants Synium House, Shallowford Court Henley in Arden Warwickshire B95 5FY Bankers: Barclays Bank Market Cross Stratford upon Avon CV37 6AP Solicitors: B P Collins LLP Gross & Co Collins House 83-84 Guildhall Street 32-38 Station Road Bury Saint Edmunds Gerrards Cross IP33 1LN SL9 8EL

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Board of Trustee’s Report

Structure, governance and management

The financial statements comply with the Charities Act 2011, the Companies Act 2006, the Memorandum and Articles of Association, and 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 2015).

The charity is a charitable company incorporated on 16th December 2004 under the Companies Act 1985. The company is limited by guarantee not having a share capital and is governed by its Memorandum and Articles of Association dated 2nd December 2004.

The day-to-day management of the charity has been delegated by the trustees to Mr Brad Macdonald (Regional Manager) and Mr David Howard (Company Secretary). The Pastor General of the Philadelphia Church of God is Mr Gerald Flurry.

All trustees are familiar with the practical work of the Charity. New Trustees are fully briefed by management and encouraged to familiarize themselves with the charity and the context within which it operates.

New trustees are always members in good standing of the Philadelphia Church of God. Their attendance, interest and competence in organising and participating in Church activities is evaluated, as well as their understanding of and involvement in promoting the objectives and activities of the charity. Individuals who show interest and enthusiasm in promoting these objectives, along with showing signs of having the competence needed to fulfil the role of a trustee successfully, are considered for upcoming positions. Current management discusses potential trustees before interviewing the candidates to ensure they have the skills needed and the desire to fulfil the appointment. Management considers new appointments, bearing in mind the need for the appropriate mix of skills, ethnic origin and gender before making the appointment.

New trustees have full access to the individuals to whom the day to day running of the Charity has been delegated to discuss all relevant information: their legal obligations under charity and company law, the Charity commission guidance on public benefit, and the content of the Memorandum and Articles of Association (of which, they may acquire a copy of), the decision making processes, and recent financial performance of the charity. They meet key employees and other trustees. Trustees are encouraged to attend appropriate external training events where these will facilitate the undertaking of their role.

The Philadelphia Church of God follows the biblical instruction regarding Church hierarchy. The Apostle and Pastor General is the head of the Church directly under Jesus Christ. Under the Pastor General are the following ordained ministerial ranks (in order of seniority): Evangelists, Pastors, Preaching Elders, Local Elders (employed) and Local Church Elders (not employed) by the Church. Serving under the ministry are Deacons, Deaconesses, Contact Persons and volunteers. Trustees of the Charity always hold an office listed above.

Senior Trustees are involved in the large decision making of the Charity (e.g. large purchases, typically over £500, capitalisation cost, or taking on new employees etc.) in consultation with the Pastor General. As previously stated, they delegate the day-to-day running and administration. Some expenses over £500 are pre-approved

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Board of Trustee’s Report

such as expenses that are required for the day-to-day running of the business such as normal stationery purchases, travel costs (within certain criteria), and monthly postage costs.

The most senior trustees consider appropriate pay for employees. The final decision regarding pay falls to senior ranking ministers who are heavily involved in the day-to-day running of the Charity, in consultation with the Pastor General, who gives final approval. The policy used in determining pay rates is designed to ensure the same level of pay for all staff in posts with work of equal value, which is based on a comprehensive job evaluation scheme. For certain staff with specialist skills, a market adjustment may be applied, the value of which is determined by the median of market-related salaries and is subject to annual review. Staff pay is reviewed annually, and any increases as a result of the annual pay negotiations typically go into effect from the last pay of each year. No staff member over the age of 18 earns less than the national living wage. No employee earns less than minimum wage. The Charity offers a competitive rate of pay. The Philadelphia Church of God compensates all employees to allow a comfortable, but not lavish, standard of living. To ensure high staff morale bonuses are reviewed annually. Tea, coffee and lunches are provided for employees working at our Edstone head office.

Senior members of staff have salaries commensurate with their roles within the organisation. Salaries for these roles are set individually with reference to the wider marketplace and are closely overseen by senior trustees and the Pastor General. In general, these staff can expect the same percentage increase in salary for cost of living as the rest of the staff enjoy.

During 2020, the highest paid full-time member of staff earned 2 times the salary received by the lowest paid full-time member of staff, and 1.4 times the median full-time salary.

The Philadelphia Church of God (United Kingdom), the Philadelphia Church of God, Inc. (United States), and the Stichting Philadelphia Church of God (Europe) are independent organisations but are ecclesiastically connected in doctrine and purpose. Although separately incorporated, the Philadelphia Church of God, Inc. (United States) is the 'parent' company and ensures that the Philadelphia Church of God (United Kingdom) is ecclesiastically run in the same fashion as the 'parent' organisation. To ensure this occurs, senior staff of the 'parent' organisation are required to be on the board of trustees of the Charity. In addition to the ecclesiastical connection, the companies provide resources and support for each other to varying degrees. The Philadelphia Church of God (United Kingdom) receives and makes charges to these affiliated foreign organisations for resources or services rendered or received.

The Charity was assisted in many ways by the volunteer program. Weekly volunteers pack mail. We had 3 regular volunteers who assisted with office work and packing mail. This is the same as in 2019. The vast majority of labour for our annual conference in the autumn are volunteer. For the 2020 conference we were assisted by approximately 80 volunteers.

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Board of Trustee’s Report

Risk Management

The trustees have a risk management strategy which comprises:

Objectives and activities

The objectives of the Philadelphia Church of God are to proclaim the Gospel of Jesus Christ according to the word of God to the people of the United Kingdom and British Commonwealth, and in all the world for a witness to all nations, by the spoken word, by radio, by television, by recordings, by printed word, by internet and by personal evangelism: to work for the salvation of souls; to raise up and organise local Church congregations; to minister to the edifying of believers; to assemble members together in worship of Almighty God for mutual edification and Christian Fellowship in Jesus Christ; to ordain and grant credentials of the license to preach to such as the Church believes to be called of God and qualified according to Holy Scripture as Evangelists, Ministers, Elders or Deacons.

The Philadelphia Church of God is a non-proselytising, non-profit making Spiritual enterprise which does not solicit funds publicly and which distributes all of its education material free of charge.

The Philadelphia Church of God sponsors an international television program, "The Key of David", which airs in the United States of America, Canada, Latin America, the Caribbean, Australia, New Zealand, Asia-Pacific. The Church also produces a monthly magazine, "The Philadelphia Trumpet", which is circulated in over 100 countries in five languages.

Voluntary help was utilised for office administrations and clerical work. A number of local and foreign volunteers assisted in foreign language translation, editing and proofreading of literature and books for publication.

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Board of Trustee’s Report

Strategic Report

The following sections for achievements and performance and financial review form the strategic report of the charity.

Achievements and Performance

Activities and achievements during the year 31st December 2020 were as follows:

Publishing, advertising campaigns, and distribution of literature in ten languages.

The Philadelphia Church of God publishes the Trumpet magazine, produces television programs, magazines, booklets, websites, videos, radio and other media, primarily in English, and directly fulfilling the objectives of the Charity. At the start of 2020 the Trumpet magazine had 2,600 subscribers in the UK. By the end of the year that number remained the same. The trustees are disappointed that there wasn’t growth and will discuss ways to promote the magazine in 2021.

To reach a larger audience and achieve the Charities main objectives, we are making a strong effort to reach as many people as possible who don’t speak English as a first or second language. We have a translations department that renders English-language media into 10 other languages. The department coordinates volunteers who take on the task of converting the original English into Afrikaans, Dutch, Finnish, French, German, Norwegian, Portuguese, Spanish, Italian and Hebrew.

In 2020, we continued to have many visitors to our Foreign Language websites. Many of these visitors download or ordered our free literature. We also had many subscribers and views to our Foreign Language YouTube channels.

The goal for translators has always been the same: to produce more words, more books, more booklets, more videos, more website posts, more social media updates, more e-mail newsletters and more advertisements— more Bible prophecy-based insights, warnings and hope, reaching more people. The department directly fulfils the objectives of the charity.

In 2020, the department produced 104 videos and podcasts. This compares to 46 in 2019. Literature requests in French were 9.5 times higher, and downloads were double compared to 2019. In German, literature requests were nearly four times as high, and downloads increased 25 percent. A total of 983 articles were posted to the website in German, French, Spanish and Dutch, which was 11% lower than in 2019, but still 39% more than in 2018.

Congregations & Ministry

The Philadelphia Church of God has congregations in seven countries throughout Europe and employs ministers to cater for the spiritual needs and ordains deacons to take care of physical needs of the congregations.

Since the Charity does not employ sufficient ministers to have a minister in each congregation for each Church service, the Head Office at Edstone Hall distributed iPods in 2017 to be able to distribute Sermons electronically to these congregations to help cater for the spiritual needs of the Churches members. The iPods have proven

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Board of Trustee’s Report

an extremely valuable resource through 2020 to be able to cater for the spiritual needs of the congregations. They are loaded with a secure proprietary app enabling the Church to ‘push’ messages due to be played in congregations. This saves a lot of time, manpower, and postage, saving money. The I.T. department investigated and implemented the ability to ‘push’ video messages to these iPods. The iPods are easily connectable to a projector or monitor, which provides an even more effective way of providing recorded Sermons and messages to local congregations.

Raising up of Church congregations and conducting Church Services.

The Philadelphia Church of God has congregations in six countries throughout Europe and employs ministers to cater for the spiritual needs and ordains deacons to take care of physical needs of the congregations. Covid has restricted meetings, and from time-to-time meetings have had to be cancelled due to restrictions, but congregations have been meeting as and when restrictions allow.

Rendering of charitable works under the Benevolence Program.

The Philadelphia Church of God has ministers, deacons and volunteers who visit elderly, infirm and housebound members. The Church provides financial assistance for people who are in need financially, either to provide for their physical or spiritual needs. Financial assistance is given to members that would not otherwise be able to attend the annual Holy Days. Attendance of these Holy Days is an important part of the membership’s spiritual needs.

Ministerial visit requests has been on a steady increase. In 2020 there were 74 requests for ministerial contact or visit to discuss the possibility of attending services in a local congregation. The trustees are pleased that his figure is up from 67 in 2019.

Welfare and counselling of Church membership and members of the public requesting ministerial visits. The Philadelphia Church of God has ordained ministers who counsel and provide support to members. In 2020, the ministry received 74 requests for visits from non-members who have questions, counselling requests or who were interested in attending Church services. The trustees are very happy with this and feel that people seeking ministerial contact and congregational attendance is one of the best measures of success in achieving the goals of the Charity and show that the Charity is successfully spreading the Gospel of Jesus Christ.

In addition, the Philadelphia Church of God receives doctrinal and biblical questions from the general public. We have a “Personal Correspondence Department” to respond to these questions.

The administration of an international convention site in England

Approximately 100 Church members attended our convention site in England. This convention gives the members the opportunity to meet other members of the Charity. Sermons on the Gospel message were given throughout the convention and activities were organised to promote interaction and unity within the Church Charity. The administration of the Charity are aware of the importance of this annual convention in fulfilling its objectives. It provides an invaluable opportunity for the ministry to cater for the spiritual needs of the members of the Church and advance the objective of preaching the Gospel.

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Board of Trustee’s Report

Administering a youth camp for teens and members of the Church.

Members and youth attended a very successful campout on the grounds of the Church’s offices at Edstone Hall during the summer of 2020. The campers enjoyed many activities, including sports, hikes, mountain biking, team building etc. and also attended lectures. The camp provided the Charity the opportunity to proclaim the Gospel to the attendees in a fun and uplifting environment. It also gave the campers a closer view of the inner-workings of the Charity and how the Charity fulfils its objectives.

Public Benefit

Every activity and achievement listed above is a fulfilment of the objectives of the Philadelphia Church of God. Proclaiming the Gospel of Jesus Christ according to the word of God through various media outlets provides hope to those who hear and read the message. It promotes unity within the Church community and is uplifting to the people that come into the positive influence of the Charity. The Charity and its members strive to live the benevolent give way of life, which benefits both members and non-members and produce upstanding, law abiding citizens. The youth program helps young people grow into polite, respectful young men and women who are a benefit to their local communities and society. The benevolence program caters for those in physical need and the volunteer programs provide opportunities for the Church and its members to enjoy seeing others benefit from the Christian way of life. The annual conventions educate the members in being followers of Christ, living and setting the example of the give way of life.

The Charity continues to explore other opportunities to provide a benefit to society though achieving its objectives in more areas as the Charity continues to expand and grow.

In shaping our objectives for the year and planning our activities, the trustees have considered the Charity Commission’s guidance on public benefit, including the guidance ‘public benefit: running a charity (PB2)’.

The Church relies on donation income along with the tithes and offerings of its members to cover its operating costs.

Financial Review

The Statement of Financial Activities for the year is set out on page 14 of the financial statements.

During the year to 31 December 2020, the charity had total income of £ 986,353. Total operating charitable expenditure was £ 897,517 giving an operating Surplus of £ 88,835.

Donations from membership continue to be the core income source of the charity.

The trustees have reviewed the circumstances of the Philadelphia Church of God and consider that adequate resources continue to be available to fund the activities of the charity for the foreseeable future.

The trustees are of the view that the charity is a going concern.

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Board of Trustee’s Report

Also, the “parent” organisation in the USA is a much larger organisation and can assist financially if the need arises providing a new source of income. Both the Pastor General and CFO of the “parent” organisation are trustees of the UK company, so know the financial position and the going concern of the “parent” organisation. As the scope of the charitable work increases in the UK so would income as the more people who are impacted by the Philadelphia Church of God brings in more donation income.

Gift Aid showed a 14% increase over 2019, rising from £67,899 in 2019 to £77,508 in 2020. In addition, in 2020 the Charity was able to claim £1,613.55 from the Gift Aid Small Donations Scheme (GASDS). The trustees have discussed promoting the general knowledge of Gift Aid among donors to ensure they understand the great benefit the Charity receives from it. If they qualify for Gift Aid they will be encouraged to sign the declaration and increase the income of the Charity.

The trustees are happy to report that they are confident that the Charity is in a strong financial position despite the decrease in reserves and continued growth in donation income.

Plans for Future Periods

The objectives and activities of the charity will remain the same in future periods. Initiatives for the future include increasing the Philadelphia Trumpet magazine subscription list through various forms of marketing, and distribution of the Church’s books and booklets, including a Bible Correspondence Course.

The need for more ministers to cater for the needs of the congregations and the growing interest from the public is being discussed and considered. The workload at the Head Office at Edstone Hall is increasing, so the possibility of taking on more labour to increase article production, television program production and radio is being investigated along with training programs for current staff.

The increase in the foreign language translations department has produced a lot of interest. Promotion on TV and online have also seen good success. These are two areas we would like to continue to pursue in future periods to see continued growth.

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Board of Trustee’s Report

Trustees’ Responsibilities

The trustees are responsible for preparing the annual report and the financial statements in accordance with applicable law and United Kingdom Generally Accepted Accounting Practice.

Company law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the net income or expenditure of the charity for the year. In preparing these financial statements the trustees are required to:

The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011. They 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 appended financial statements have been prepared on the accruals basis and have been examined by an independent examiner, whose report is also appended.

This report was approved by the Board of Trustees on 08 February 2022 and signed on their behalf by:

Full Name: Mr Waduthanthrige Perera

Signature:

Position: Trustee

Date: 08 February 2022

11

Independent Examiner’s Report

Report to the trustees/members of: Philadelphia Church of God On accounts for the year ended: 31st December 2020 Charity No: 1044860

Respective responsibilities of trustees and examiner

The charity’s trustees are responsible for the preparation of the accounts. The charity’s trustees consider that an audit is not required for this year under section 144 of the Charities Act 2011 (the Charities Act) and that an independent examination is needed.

It is my responsibility to:

Basis of independent examiner’s statement

My examination was carried out in accordance with general Directions given by the Charity Commission. 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 no opinion is given as to whether the accounts present a ‘true and fair’ view and the report is limited to those matters set out in the statement below.

Independent examiner’s statement

In connection with my examination, no matter has come to my attention:

Signed: Date: 08 February 2022

Name: Tobi Labeodan FCCA, for and on behalf of Cullingworth & Co Limited Relevant professional qualification(s) or body (if any): ACCA Address: Synium House, Shallowford Court, r/o 94-96 High Street, Henley in Arden B95 5FY

12

Statement of Financial Activities: Year Ended 31st December 2020

Notes
Income:
Donations and legacies
5
Other charitable activities
5
Investment income
5
Other income
5
Total Income
Total Income
Expenditures on:
Expenditure on charitable activities
6
Other charitable Activities
7
Other Costs
7
Total Expenditures
Net income/(expenditure)
Transfers between funds
Other recognised gains/(losses):
Gains/(losses) on revaluation of fixed assets
Gains/(losses) on investment assets
Net movement in funds
Reconciliation of funds:
Total funds brought forward at 1 Jan
Total funds carried forward at 31 Dec		 2020
2020
2020
Unrestricted
Funds
Restricted
Funds
Total
Funds
£
£
£
598,817
-
598,817
54,065
-
54,065
47
-
47
333,425
-
333,425
986,353
-
986,353
986,353
-
986,353
880,643
-
880,643
2,246
-
2,246
14,628
-
14,628
897,517
-
897,517
88,836
-
88,836
-
-
88,836
-
88,836
(278,130)
-
(278,130)
(189,290)
-
(189,290)		 2019
2019
2019
Unrestricted
Funds
Restricted
Funds
Total
Funds
£
£
£
543,310
-
543,310
58,074
-
58,074
117
-
117
353,815
-
353,815
955,315
-
955,315
955,315
-
955,315
1,000,808
-
1,000,808
1,064
-
1,064
14,718
-
14,718
1,016,590
-
1,016,590
(61,275)
-
(61,275)
-
-
(61,275)
-
(61,275)
(216,854)
-
(216,854)
(278,130)
-
(278,130)

13

Statement of Financial Position: Year Ended 31st December 2020

Notes
Fixed Asset
Tangible assets
10
Total Fixed Asset
Current Assets
Debtors
11
Cash at bank and in hand
Total Current Assets
Creditors: amounts falling due within one year
Creditors
12
Total Creditors: amounts falling due within one year
Net current assets (liabilities)
Total assets less current liabilities
Creditors: amounts falling due after more than one year
Other Non-Current Liabilities
13
Provisions
Total Creditors: amounts falling due after more than one
year
Total net assets (liabilities)
Funds of the charity
Retained Reserves
Surplus / (Deficit) for the year
Total charity funds		 2020
2,874,822
2,874,822
193,529
97,980
291,509
183,666
183,666
107,844
2,982,666
3,171,956
3,171,956
(189,290)
(278,130)
88,838
(189,290)		 2019
2,870,496
2,870,496
136,564
5,996
142,560
402,493
402,493
(259,933)
2,610,563
2,888,693
2,888,693
(278,130)
(216,854)
(61,275)
(278,130)

14

Cash Flow Statement: Year Ended 31st December 2020

OPERATING ACTIVITIES
Net Income
Adjustments to reconcile Net Income to Net Cash provided by operations:
Other Debtors
Prepayments
Other Creditors
Net cash provided by operating activities
INVESTING ACTIVITIES
Fixtures & Fittings
Motor Vehicles
Building
Equipment
Net cash provided by investing activities
FINANCING ACTIVITIES
Other Creditors
Net cash provided by financing activities
Net cash increase for period
Cash at beginning of period
Cash at end of period		 2020
88,836
(56,685)
(280)
(218,827)
(186,957)
2,957
(7,749)
-
466
(4,325)
283,266
283,266		 2019
(61,275)
295
(267)
(89,267)
(150,514)
3,419
6,091
-
1,934
11,443
8,169
8,169
91,984
5,997
97,981		 (130,902)
136,899
5,997

15

Notes to the Financial Statements

1. General information

The charity is a private company limited by guarantee, registered in England and Wales and a registered charity in England and Wales. The address of the registered office is Edstone Hall, Wootton Wawen, Henley in Arden, Warwickshire, B95 6DD, England.

2. Statement of compliance

These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland', the 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) (Charities SORP (FRS 102)) and the Charities Act 2011.

3. Accounting policies Basis of preparation

The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through income or expenditure.

The financial statements are prepared in sterling, which is the functional currency of the entity.

Going concern

There are no material uncertainties about the charity's ability to continue.

Judgements and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

Fund accounting

Unrestricted funds are available for use at the discretion of the trustees to further any of the charity's purposes.

Designated funds are unrestricted funds earmarked by the trustees for particular future project or commitment.

Restricted funds are subjected to restrictions on their expenditure declared by the donor or through the terms of an appeal, and fall into one of two sub-classes: restricted income funds or endowment funds.

Incoming resources

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Notes to the Financial Statements

All incoming resources are included in the statement of financial activities when entitlement has passed to the charity; it is probable that the economic benefits associated with the transaction will flow to the charity and the amount can be reliably measured. The following specific policies are applied to particular categories of income:

Resources expended

Expenditure is recognised on an accruals basis as a liability is incurred. Expenditure includes any VAT which cannot be fully recovered, and is classified under headings of the statement of financial activities to which it relates:

All costs are allocated to expenditure categories reflecting the use of the resource. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs are apportioned between the activities they contribute to on a reasonable, justifiable and consistent basis.

Operating leases

Lease payments are recognised as an expense over the lease term on a straight-line basis. The aggregate benefit of lease incentives is recognised as a reduction to expense over the lease term, on a straight-line basis.

Tangible assets

Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

17

Notes to the Financial Statements

An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other recognised gains and losses, unless it reverses a charge for impairment that has previously been recognised as expenditure within the statement of financial activities. A decrease in the carrying amount of an asset as a result of revaluation, is recognised in other recognised gains and losses, except to which it offsets any previous revaluation gain, in which case the loss is shown within other recognised gains and losses on the statement of financial activities.

Depreciation

Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:

Fixtures and fittings - 15% reducing balance Motor vehicles - 20% straight line Computer Equipment - 33% reducing balance

Impairment of fixed assets

A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date.

For the purposes of impairment testing, when it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash- generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that largely independent of the cash inflows from other assets or groups of assets.

For impairment testing of goodwill, the goodwill acquired in a business combination is, from the acquisition date, allocated to each of the cash-generating units that are expected to benefit from the synergies of the combination, irrespective of whether other assets or liabilities of the charity are assigned to those units.

Provisions

Provisions are recognised when the entity has an obligation at the reporting date as a result of a past event, it is probable that the entity will be required to transfer economic benefits in settlement and the amount of the obligation can be estimated reliably. Provisions are recognised as a liability in the statement of financial position and the amount of the provision as an expense.

Provisions are initially measured at the best estimate of the amount required to settle the obligation at the reporting date and subsequently reviewed at each reporting date and adjusted to reflect the current best estimate of the amount that would be required to settle the obligation. Any adjustments to the amounts previously recognised are recognised in income or expenditure unless the provision was originally recognised as part of the cost of an asset. When a provision is measured at the present value of the amount expected to be required to settle the obligation, the unwinding of the discount is recognised as a finance cost in the statement of financial activities in the period it

18

Notes to the Financial Statements

arises, and is allocated to the appropriate expenditure heading.

Financial instruments

A financial asset or a financial liability is recognised only when the charity becomes a party to the contractual provisions of the instrument.

Basic financial instruments are initially recognised at the amount receivable or payable including any related transaction costs.

Current assets and current liabilities are subsequently measured at the cash or other consideration expected to be paid or received and not discounted.

Debt instruments are subsequently measured at amortised cost.

Where investments in shares are publicly traded or their fair value can otherwise be measured reliably, the investment is subsequently measured at fair value with changes in fair value recognised in income and expenditure. All other such investments are subsequently measured at cost less impairment.

Other financial instruments, including derivatives, are initially recognised at fair value, unless payment for an asset is deferred beyond normal business terms or financed at a rate of interest that is not a market rate, in which case the asset is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

Other financial instruments are subsequently measured at fair value, with any changes recognised in the statement of financial activities, with the exception of hedging instruments in a designated hedging relationship.

Financial assets that are measured at cost or amortised cost are reviewed for objective evidence of impairment at the end of each reporting date. If there is objective evidence of impairment, an impairment loss is recognised under the appropriate heading in the statement of financial activities in which the initial gain was recognised.

For all equity instruments regardless of significance, and other financial assets that are individually significant, these are assessed individually for impairment. Other financial assets are either assessed individually or grouped on the basis of similar credit risk characteristics.

Any reversals of impairment are recognised immediately, to the extent that the reversal does not result in a carrying amount of the financial asset that exceeds what the carrying amount would have been had the impairment not previously been recognised.

Defined contribution plans

Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a

19

Notes to the Financial Statements

reduction in future payments or a cash refund.

When contributions are not expected to be settled wholly within 12 months of the end of the reporting date in which the employees render the related service, the liability is measured on a discounted present value basis. The unwinding of the discount is recognised as an expense in the period in which it arises.

4. Limited by guarantee

The Charity is a company limited by guarantee and has no share capital. Every member promises, if the Charity is dissolved while he or she is a member or within 12 months after he or she ceases to be a member, to contribute such sum (not exceeding £10) as may be demanded of him or her towards the payment of the debts and liabilities of the Charity incurred before he or she ceases to be a member, and of the costs charges and expenses of winding up, and the adjustments of the rights of the contributories among themselves.

5. Donations and legacies

Donations
1st T & Offerings
Bequests
Holy Day Offerings
Building Fund Offerings
PYC Sponsors
Philadelphia Foundation Offering
Tithe of Tithe Offerings
Excess 2nd Tithe Offerings
3rd Tithe Offerings
Gift Aid
Airplane Fund
Total donations and legacies
Charitable activities
Sales UK
PYC Fee Income
Miscellaneous Income
Total charitable activities
Investment income
Interest Income
Total investment income
Other income
International Support - USA
International Support - AUS
Total other income		 2020
Unrestricted
Funds
Total Funds
£
£
377,795
377,795
-
-
113,655
113,655
5,341
5,341
-
-
-
-
8,802
8,802
9,765
9,765
373
373
77,509
77,509
5,576
5,576
598,817
598,817
138
138
-
-
53,926
53,926
54,065
54,065
47
47
47
47
314,247
314,247
19,178
19,178
333,425
333,425		 2019
Unrestricted
Funds
Total Funds
£
£
313,411
313,411
16,390
16,390
122,677
122,677
7,329
7,329
133
133
-
-
6,277
6,277
6,021
6,021
871
871
67,899
67,899
2,302
2,302
543,310
543,310
117
117
560
560
57,397
57,397
58,074
58,074
117
117
117
117
353,815
353,815
-
-
353,815
353,815

20

Notes to the Financial Statements

6. Expenditure: Charitable activities

Expenditure on charitable activities
Advertising
Audio/Visual Expenses
Bank Fees
Activity Expense
Internet Costs
Courier/Freight
Equipment Rental
Landscaping Fuel
Hall Rental
Insurance
Food & Beverages
Tools
Furnishings
Landscaping Supplies
Medical Expenses
Tuition Expenses
Salaries
Ministerial Travel
Admin Auto Reimbursement
Admin Travel
Employer National Insurance UK
Employer Pension Contributions
Miscellaneous Expense
Office Supplies
Postage
Printing
Professional Consulting Fees
Repairs & Maintenance
Room Rent - UK
Subscriptions & Library Expense
Telephone
Television Broadcasting
Council Tax
Utility Expenses
Visa/Immigration Expenses
3T Assistance - Members
Total Expenditure on Charitable Activities		 2020
Unrestricted
Funds
Total Funds
£
£
421
421
3,275
3,275
1,719
1,719
(9,793)
(9,793)
5,291
5,291
307
307
-
-
21
21
421
421
7,881
7,881
19,816
19,816
-
-
-
-
14,992
14,992
-
-
2,458
2,458
124,510
124,510
473,520
473,520
-
-
3,246
3,246
53,564
53,564
5,213
5,213
98
98
44,759
44,759
-
-
-
-
5,617
5,617
11,155
11,155
-
-
2,342
2,342
4,839
4,839
54,274
54,274
9,186
9,186
31,288
31,288
7,848
7,848
2,375
2,375
880,643
880,643		 2019
Unrestricted
Funds
Total Funds
£
£
-
-
5,963
5,963
2,269
2,269
10,583
10,583
4,615
4,615
32
32
-
-
238
238
18,350
18,350
6,534
6,534
30,701
30,701
-
-
-
-
6,522
6,522
-
-
2,164
2,164
99,597
99,597
525,287
525,287
-
-
13,922
13,922
49,387
49,387
3,156
3,156
1,944
1,944
47,845
47,845
-
-
-
-
4,208
4,208
50,130
50,130
-
-
3,507
3,507
5,537
5,537
63,982
63,982
11,874
11,874
24,974
24,974
6,567
6,567
920
920
1,000,808
1,000,808

21

Notes to the Financial Statements

7. Expenditure: Other charitable activities and other costs

Other charitable Activities
FOT Activity Expense - UK
FOT Assistance - UK
Greeting Cards & Flowers
PYC Activity Supplies
PYC Camp Rental
PYC Shirts
PYC Trophies
Total Other Charitable Activities
Other Costs
Gain/Loss on Disposal
Depreciation
Accountancy
Total Other Costs		 2020
Unrestricted
Funds
Total Funds
£
£
1,627
1,627
470
470
85
85
65
65
-
-
-
-
-
-
2,246
2,246
1,024
1,024
11,354
11,354
2,250
2,250
14,628
14,628		 2019
Unrestricted
Funds
Total Funds
£
£
756
756
194
194
114
114
-
-
-
-
-
-
-
-
1,064
1,064
-
-
11,443
11,443
3,275
3,275
14,718
14,718

8. Staff costs

The total staff costs and employee benefits for the reporting period are analysed as follows:

Wages and salaries
Social security costs
Employer contributions to pension plans		 2020
£
124,510
53,564
5,213
183,287		 2019
£
99,597
49,387
3,156
152,140

The average head count of employees during the year was 25 (2019: 31). The average number of full-time equivalent employees during the Year is analysed as follows:

General Administration
Congregational
Broadcasting
Publishing		 2020
15
3
2
5
25		 2019
16
3
2
10
31

22

Notes to the Financial Statements

The number of employees whose remuneration for the year fell within the following bands, were:

£60,000 to £69,999
£70,000 to £79,999		 2020 2019
-
-
-

9. Trustee remuneration and expenses

Neither the Trustees nor persons connected with them received any remuneration or other benefits.

Out of pocket expenses were reimbursed to the Trustees as follows:

Motor, travel and other expense 2020
0
0		 2019
0
0

10. Tangible fixed assets

Cost
At 1st January 2020
Additions
Disposals
Revaluation
At 31st December 2020
Depreciation
At 1st January 2020
Charge for the year
Disposals
At 31st December 2020
Net Book Value
At 31st December 2019
At 31st December 2020		 Freehold
property
£
2,830,820
2,830,820
-
-
-
2,830,820
2,830,820		 Fixtures &
Fittings
£
38,798
-
(1,051)
37,747
19,300
2,897
(992)
21,205
19,498
16,542		 Motor
vehicles
£
45,757
14,900
(12,750)
47,907
36,309
6,187
(11,785)
30,711
9,448
17,196		 Equipment
£
41,380
1,800
43,180
30,649
2,266
32,915
10,731
10,265		 Total
£
2,956,754
16,700
(13,801)
-
2,959,653
86,258
11,350
(12,777)
-
84,831
2,870,496
2,874,822

23

Notes to the Financial Statements

11. Debtors

Debtors
Prepayments and accrued income
Other debtors		 2020
£
3,982
189,547
193,529		 2019
£
3,702
132,862
136,564

12. Creditors: amounts falling due within one year

Social security and other taxes
Other creditors
13.
Creditors: amounts falling due after more than one year
Other creditors		 2020
£
18,379
165,287
183,666
2020
£
3,171,956
3,171,956		 2019
£
18,864
383,629
402,493
2019
£
2,888,693
2,888,693

14. Pensions and other post-retirement benefits

Defined contribution plans

The amount recognised in income or expenditure as an expense in relation to defined contribution plans was £5,213.38 (2019: £3,155.57).

24