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2022-04-04-accounts

REGISTERED CHARITY NUMBER: 1051780

REPORT OF THE TRUSTEES AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 4 APRIL 2022

FOR

GOVERNANCE MINISTRIES CHARITY

Higson APS Ltd

GOVERNANCE MINISTRIES CHARITY

CONTENTS OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 4 APRIL 2022

Page
Report of the Trustees 1 to 4
Report of the Independent Auditors 5 to 6
Statement of Financial Activities 7
Balance Sheet 8
Cash Flow Statement 9
Notes to the Cash Flow Statement 10
Notes to the Financial Statements 12 to 20
Detailed Statement of Financial Activities 21 to 22

GOVERNANCE MINISTRIES CHARITY

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 4 APRIL 2022

The trustees present their report with the financial statements of the charity for the year ended 4 April 2022. The trustees have adopted the provisions of Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019).

OBJECTIVES AND ACTIVITIES

Significant activities and future plans

During the year to 2022 Governance Ministries continued to broadcast simultaneously the channel TBN UK on Terrestrial Freeview Channel 66 and on Satellite Sky Channel 582.

TBN UK continues to put the gospel of Jesus Christ behind the front door of more than 95% of the approximate 29 million homes in the United Kingdom and 2m homes in Ireland.

The impact of TBNUK also continues to grow through Digital Media including on line through watch.tbn.uk and is viewed around the world.

The TBNUK management and leadership team continue to focus on generating business income through airtime sales to programmers, advertisers and sponsors, while tightly managing broadcasting costs, and in such a way we can build the TV business activity of engaging with increasing numbers of viewers on Freeview, Satellite and Digital Media.

It is quality programming with viewer engagement through encouragement, support, prayer and the Word of God, while teaching and training them in life based on biblical truth, that continues to attract viewers to TBNUK. In turn we expect normal TV advertising and sponsorship sales to increase as we attract more viewers to TBN UK.

Public benefit

Governance Ministries furthers its primary objects by promoting the Gospel of Jesus Christ and extending the Christian faith through the channel, TBN UK, broadcasting 24/7 to the United Kingdom. The schedule content advances the education of the public by teaching and encouraging the adoption of Biblical principles and ethics and is supported by Radio, Web Site, watch.tbn.uk streaming on demand, Facebook, Twitter, Instagram, YouTube.Com/tbnuktv and Telephone support including Prayer lines.

Grantmaking

The Charity does not have any formal grant making policies.

FINANCIAL REVIEW

Principal funding sources and review of expenditure

The principle sources of income in the year were "air time sales" to other ministries whose programmes on TBN UK advances the christian religion by promoting the Gospel of Jesus Christ. In addition, advertisments and sponsorship sales were secured. TV viewers also decide to make gifts and donations.

Governance Ministries have been doing this for a number of years and all systems and processes are working well.

The trustees continue to tightly manage the expenditure process. Trustees approve every payment schedule by email, first knowing how much is in the bank account before and after they go to approve the schedule of payments. We advance the Christian religion by promoting the gospel of Jesus Christ to millions of homes in the UK and Europe through the business activity of a broadcast TV channel, buying airtime on Digital Terrestrial Platform (Freeview) and Satellite Platform (Astra) seen through Sky electronic programme guide..

Programme production costs continue to bring more UK and European produced content to the TBNUK schedule.

Programme production is going to be an increasing area of expenditure in coming years. However the Trustees are pleased to report that 50% of the programmes in the TBN UK schedule are produced within the UK and Europe and already comply with Ofcom's requirements.

Page 1

GOVERNANCE MINISTRIES CHARITY

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 4 APRIL 2022

FINANCIAL REVIEW

Reserves policy

Governance Ministries operates a Reserves Policy which is a designated figure for the sole purpose of supporting essential staff and building operations in the event of unforeseen difficulties.

The monies for the Reserves Policy have been built up from surplus income and are not grant funded or restricted.

The Trustees have agreed a reserves policy that requires reserves be maintained at a level which ensures that Governance Ministries core activity could continue during a period of unforeseen difficulty.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing document

The charity is controlled by its governing document, a deed of trust and constitutes an unincorporated charity.

The object of the Trust is to advance the Christian faith by the proclamation and forbearance of the Gospel of God concerning His Son Jesus Christ our Lord and the preaching and teaching of the Word of God in the United Kingdom and Europe and such other places decided upon by the trustees consistent with the Doctrine and Articles of Belief set forth in the trust deed. We primarily achieve this through the business of broadcasting on Freeview, Sky and on Digital Media.

Recruitment and appointment of new trustees

There shall be at least three Trustees. Every future trustee shall be appointed by a resolution of the Trustees passed at a special meeting called under Clause 11.

In selecting persons to be appointed as Trustees, the Trustees shall take into account the benefits of appointing a person who is able by virtue of his or her personal or professional qualifications to make a contribution to the pursuit of the objects or the management of the Charity

Organisational structure

Governance Ministries has registered the Working Names of TBN Europe, ( TV Channel ) TBN UK, ( TV Channel ) , Workplace Ministers ( Promoting and Establishing Workplace or Marketplace Church's across cities, Seminars, Teaching Materials, one to one mentoring ), Living Seeds ( Training and Business School Established in Sierra Leone ), and One Palm Outreach Mission to Nepal ( Establishing Workplace Church in Nepal ).

Millions of people are reached and their needs ministered to with thousands making contact to tell us.

Trinity Broadcasting Network headquartered in California, USA is a visionary partner with Governance Ministries. Both organisations primary object is to advance the Christian Religion by the promotion of the Gospel of Jesus Christ and one area of co-operating is the securing and sustaining satellite and terrestrial airtime platforms. We are completely separate legal entities but we cooperate to achieve a mutual vision. Unity in the body of Christ is a key pursuit of Governance Ministries.

Induction and training of new trustees

The induction and training of trustees involves

  1. Making Trustees aware of all Current Charity Commission Guidance sheets for Trustees and the best practice they should follow to carry out the role of trustee

  2. Give each trustee a copy of the Governance Ministries trust deed and articles of belief and a number of historic Board Meeting Minutes to give some historical context.

  3. Walk Trustees through the authorising/ approving of weekly/monthly schedules of expenditure, and how to contact the finance manager if they have queries or require more information.

  4. R.A. Fleming as founder and senior trustee teaching them every aspect of the Charities business, their existing strategy and opportunities to improve, including visiting representative stakeholders in the Charity

Page 2

GOVERNANCE MINISTRIES CHARITY

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 4 APRIL 2022

STRUCTURE, GOVERNANCE AND MANAGEMENT

Related parties

The Charity pays Mr Richard Fleming (Trustee) a fee (on presentation of invoice) for consultancy services. This is in agreement with the Supplementary Deed to the Trust Deed dated 30 November 2006 and article 20b of the Trust Deed.

The Charity also pays rent on its offices to Voluntary Sector Centres (Charity number 1105259) to the value of £115,000 (2021 - £118,000) per annum, Voluntary Sector Centres has Trustees in Common with Governance Ministries.

Mr R Fleming is empowered by the Trustees to act as Chief Executive Officer and is responsible for the day to day management of the charity.

REFERENCE AND ADMINISTRATIVE DETAILS

Registered Charity number

1051780

Principal address

226 Church Road Willesden London NW10 9NR

Trustees

R A Fleming S D Mallison-Jones N Marsh Ms M Tuccillo Mrs P Seward M R Anuwe

Accountants

Higson APS Ltd

STATEMENT OF TRUSTEES' RESPONSIBILITIES

The trustees are responsible for preparing the Report of the Trustees and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

The law applicable to charities in England and Wales, the Charities Act 2011, Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed 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 incoming resources and application of resources, including the income and expenditure, of the charity for that period. In preparing those financial statements, the trustees are required to

Page 3

GOVERNANCE MINISTRIES CHARITY

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 4 APRIL 2022

STATEMENT OF TRUSTEES' RESPONSIBILITIES - continued

The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charity and to enable 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 trust deed. 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.

Approved by order of the board of trustees on 2 February 2023 and signed on its behalf by:

R A Fleming - Trustee

Page 4

REPORT OF THE INDEPENDENT AUDITORS TO THE TRUSTEES OF GOVERNANCE MINISTRIES CHARITY

Opinion

We have audited the financial statements of Governance Ministries Charity (the 'charity') for the year ended 4 April 2022 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Basis for opinion

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

Conclusions relating to going concern

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

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

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

Other information

The trustees are responsible for the other information. The other information comprises the information included in the Annual Report, other than the financial statements and our Report of the Independent Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters where the Charities (Accounts and Reports) Regulations 2008 requires us to report to you if, in our opinion:

Page 5

REPORT OF THE INDEPENDENT AUDITORS TO THE TRUSTEES OF GOVERNANCE MINISTRIES CHARITY

Responsibilities of trustees

As explained more fully in the Statement of Trustees' Responsibilities, the trustees are responsible for the preparation of the financial statements which give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

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

Our responsibilities for the audit of the financial statements

We have been appointed as auditors under Section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.

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

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Independent Auditors.

Use of our report

This report is made solely to the charity's trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity's trustees those matters we are required to state to them in an auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity's trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Higson APS Ltd

2 February 2023

Page 6

GOVERNANCE MINISTRIES CHARITY

STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 4 APRIL 2022

Notes
INCOME AND ENDOWMENTS FROM
Donations and legacies
2
Economic activities in furtherance of the Charity
Objects
3
Investment income
4
Total
EXPENDITURE ON
Economic activities in furtherance of the Charity
Objects
5
Charitable activities
6
Donations
Support Costs
Life Campus
Living Seeds
Other
Total
NET INCOME
RECONCILIATION OF FUNDS
Total funds brought forward
TOTAL FUNDS CARRIED FORWARD		 2022
Unrestricted
fund
£
1,663,404
6,775,597
5,733
8,444,734
5,621,582
263,405
579,958
5,938
266,031
80,873
6,817,787
1,626,947
6,150,245
7,777,192		 2021
Total
funds
£
1,660,656
5,771,190
7,741
7,439,587
5,264,752
274,191
547,416
2,169
966
-
6,089,494
1,350,093
4,800,152
6,150,245

The notes form part of these financial statements

Page 7

GOVERNANCE MINISTRIES CHARITY

BALANCE SHEET 4 APRIL 2022

Notes
FIXED ASSETS
Tangible assets
11
Investments
12
CURRENT ASSETS
Debtors
13
Cash at bank and in hand
CREDITORS
Amounts falling due within one year
14
NET CURRENT ASSETS
TOTAL ASSETS LESS CURRENT
LIABILITIES
NET ASSETS
FUNDS
16
Unrestricted funds
TOTAL FUNDS		 2022
Unrestricted
fund
£
103,975
300
104,275
4,951,533
3,363,132
8,314,665
(641,748)
7,672,917
7,777,192
7,777,192
7,777,192
7,777,192		 2021
Total
funds
£
75,115
1,182,000
1,257,115
2,894,950
2,523,396
5,418,346
(525,216)
4,893,130
6,150,245
6,150,245
6,150,245
6,150,245

The financial statements were approved by the Board of Trustees and authorised for issue on 2 February 2023 and were signed on its behalf by:

R A Fleming - Trustee

N Marsh - Trustee

The notes form part of these financial statements

Page 8

GOVERNANCE MINISTRIES CHARITY

CASH FLOW STATEMENT
FOR THE YEAR ENDED 4 APRIL 2022
2022
Notes
£
Cash flows from operating activities
Cash generated from operations
1
(289,070)
Net cash (used in)/provided by operating activities
(289,070)
Cash flows from investing activities
Purchase of tangible fixed assets
(52,893)
Purchase of fixed asset investments
(300)
Sale of fixed asset investments
1,182,000
Interest received
-
Net cash provided by/(used in) investing activities
1,128,807
Change in cash and cash equivalents in the
reporting period
839,737
Cash and cash equivalents at the beginning
of the reporting period
2,523,396
Cash and cash equivalents at the end of the
reporting period
3,363,132		 2021
£
579,832
579,832
(18,127)
-
-
96
(18,031)
561,801
1,961,595
2,523,396

The notes form part of these financial statements

Page 9

GOVERNANCE MINISTRIES CHARITY

NOTES TO THE CASH FLOW STATEMENT FOR THE YEAR ENDED 4 APRIL 2022

1. RECONCILIATION OF NET INCOME TO NET CASH FLOW FROM OPERATING ACTIVITIES OPERATING ACTIVITIES
2022 2021
£ £
Net income for the reporting period (as per the Statement of Financial
Activities) 1,626,947 1,350,093
Adjustments for:
Depreciation charges 24,034 30,083
Interest received - (96)
Increase in debtors (2,056,583) (958,981)
Increase in creditors 116,532 158,733
Net cash (used in)/provided by operations (289,070) 579,832
  1. ANALYSIS OF CHANGES IN NET FUNDS
Net cash
Cash at bank and in hand
Total		 At 5.4.21
£
2,523,396
2,523,396
2,523,396		 Cash flow
£
839,736
839,736
839,736		 At 4.4.22
£
3,363,132
3,363,132
3,363,132

The notes form part of these financial statements

Page 10

GOVERNANCE MINISTRIES CHARITY

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 4 APRIL 2022

1. ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements of the charity, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) 'Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Charities Act 2011. The financial statements have been prepared under the historical cost convention, with the exception of investments which are included at market value.

Income

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

Expenditure

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.

Allocation and apportionment of costs

Costs have been allocated as deemed appropriate by the Trustee's.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Programme Costs - 33% on cost - Furniture & Equipment 25% on reducing balance Motor vehicles - 20% on cost - Computer & Sound Equipment 33% on reducing balance

Taxation

The charity is exempt from tax on its charitable activities.

Fund accounting

Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.

Restricted funds 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.

Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.

Hire purchase and leasing commitments

Rentals paid under operating leases are charged to the Statement of Financial Activities on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits

The charity operates a defined contribution pension scheme. Contributions payable to the charity's pension scheme are charged to the Statement of Financial Activities in the period to which they relate.

continued...

Page 12

GOVERNANCE MINISTRIES CHARITY

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 4 APRIL 2022

2. DONATIONS AND LEGACIES

2022
£
Donations, gifts & offerings
1,661,920
Grants
1,484
1,663,404
Grants received, included in the above, are as follows:
2022
£
Job Retention Scheme
1,484
3.
ECONOMIC ACTIVITIES IN FURTHERANCE OF THE CHARITY OBJECTS
2022
£
Contribution used to help meet operating commitments
4,013,070
Broadcast airtime sales
2,360,302
Programme sponsorship
208,200
Airtime spots & advertising sales
194,025
Recharged expenses
-
6,775,597
4.
INVESTMENT INCOME
2022
£
Rents received
5,733
Deposit account interest
-
5,733		 2022
£
Donations, gifts & offerings
1,661,920
Grants
1,484
1,663,404
Grants received, included in the above, are as follows:
2022
£
Job Retention Scheme
1,484
3.
ECONOMIC ACTIVITIES IN FURTHERANCE OF THE CHARITY OBJECTS
2022
£
Contribution used to help meet operating commitments
4,013,070
Broadcast airtime sales
2,360,302
Programme sponsorship
208,200
Airtime spots & advertising sales
194,025
Recharged expenses
-
6,775,597
4.
INVESTMENT INCOME
2022
£
Rents received
5,733
Deposit account interest
-
5,733		 2021
£
1,646,434
14,222		 2021
£
1,646,434
14,222		 2021
£
1,646,434
14,222
1,660,656
2021
£
14,222
2021
£
3,155,200
2,084,069
211,950
222,273
97,698		 2021
£
14,222
5,771,190
2022
£
5,733
-
5,733		 2021
£
7,645
96
7,741
7,741

continued...

Page 13

GOVERNANCE MINISTRIES CHARITY

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 4 APRIL 2022

5. ECONOMIC ACTIVITIES IN FURTHERANCE OF THE CHARITY OBJECTS

Other trading activities

Other trading activities
Staff costs
Rent of studios
License & EPG costs
Programme costs
Freeview/Globecast airtime		 2022
£
274,238
120,500
502,457
2,227,680
2,496,707
5,621,582		 2021
£
269,187
120,500
411,545
1,864,476
2,599,044
5,264,752

6. CHARITABLE ACTIVITIES COSTS

Donations
Support Costs
Life Campus
Living Seeds		 Direct
Costs
£
263,405
-
5,938
259,846
529,189		 Support
costs (see
note 7)
£
-
579,958
-
6,185
586,143		 Totals
£
263,405
579,958
5,938
266,031
1,115,332

7. SUPPORT COSTS

SUPPORT COSTS
Governance
Management
costs
£
£
Other resources expended
-
80,873
Support Costs
320,814
259,144
Living Seeds
6,185
-
326,999
340,017		 Totals
£
80,873
579,958
6,185
667,016

8. TRUSTEES' REMUNERATION AND BENEFITS

There were no trustees' remuneration or other benefits for the year ended 4 April 2022 nor for the year ended 4 April 2021.

Mr R Fleming received payment during the year for consultancy services invoiced as permitted by the Trust Deed and subsequent Supplemental Deed. The annual cost for these services was £90,000, (2021 - £90,000) net of VAT, invoiced monthly. During the current year, this amount was invoiced through Mansion Garden Estates Limited, a company of which Mr Fleming was a director.

continued...

Page 14

GOVERNANCE MINISTRIES CHARITY

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 4 APRIL 2022

8. TRUSTEES' REMUNERATION AND BENEFITS - continued

Trustees' expenses

During the year, Trustee's Indemnity Insurance costing £4,269 (2021 - £4,269) was purchased.

In addition, trustee travel expenses totalling £6,185 (2021 - £3,640) were incurred in the year, in the main to cover travel to Sierra Leone where the Charity is an ongoing supporter of a project there.

9. STAFF COSTS

Wages and salaries
Other pension costs
The average monthly number of employees during the year was as follows:
Programme
Administration & Finance
Donor Management		 2022
£
519,194
10,274
529,468
2022
7
1
3
11		 2021
£
482,225
8,059
490,284
2021
4
1
5
10

No employees received emoluments in excess of £60,000.

10. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES

INCOME AND ENDOWMENTS FROM
Donations and legacies
Economic activities in furtherance of the
Charity Objects
Investment income
Total
EXPENDITURE ON
Economic activities in furtherance of the
Charity Objects
Charitable activities
Donations
Support Costs
Life Campus
Living Seeds		 Unrestricted
fund
£
1,660,656
5,771,190
7,741
7,439,587
5,264,752
274,191
547,416
2,169
966

continued...

Page 15

GOVERNANCE MINISTRIES CHARITY

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 4 APRIL 2022

10.
COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES - continued
Total
NET INCOME
RECONCILIATION OF FUNDS
Total funds brought forward
TOTAL FUNDS CARRIED FORWARD
11.
TANGIBLE FIXED ASSETS
Computer
Programme
Furniture
Motor
& Sound
Costs
& Equipment
vehicles
Equipment
£
£
£
£
COST
At 5 April 2021
182,608
58,599
-
207,002
Additions
-
-
48,238
4,655
At 4 April 2022
182,608
58,599
48,238
211,657
DEPRECIATION
At 5 April 2021
182,608
35,531
-
154,955
Charge for year
-
5,767
925
17,341
At 4 April 2022
182,608
41,298
925
172,296
NET BOOK VALUE
At 4 April 2022
-
17,301
47,313
39,361
At 4 April 2021
-
23,068
-
52,047		 Unrestricted
fund
£
6,089,494
1,350,093
4,800,152
6,150,245
Totals
£
448,209
52,893
501,102
373,094
24,033
397,127
103,975
75,115

continued...

Page 16

GOVERNANCE MINISTRIES CHARITY

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 4 APRIL 2022

12. FIXED ASSET INVESTMENTS

The Company has set up three wholly owned subsidiaries in the year and the investment represents the £100 share capital in each.

Full details as to the movements and purposes of the investments are contained in note 17 .

13. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
Trade debtors
Accrued income
Other debtors
Loan to subsidiaries
VAT
Prepayments		 2022
£
160,444
1,728
228,670
1,401,700
3,095,311
63,680
4,951,533		 2021
£
163,633
278,724
205,548
-
2,182,893
64,152
2,894,950

The above VAT debtor relates to VAT refund claims totalling £3,095,311 (2021 - £2,182,893) which have been withheld by HMRC following an enquiry by them into the recoverability of input VAT on some elements of the Charity's operation.

The Trustees believe, having taken considerable legal and professional advice, that the VAT is recoverable in full and do not believe that a provision against the debtor is required.

The Trustees further believe that the outcome of the enquiry and any further action by HMRC will be settled in the Charity's favour.

The intercompany loan debtors are described in further detail in Note 17 to the accounts.

14. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
Trade creditors
Taxation and social security
Other creditors		 2022
£
518,300
7,116
116,332
641,748		 2021
£
503,035
7,024
15,157
525,216

continued...

Page 17

GOVERNANCE MINISTRIES CHARITY

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 4 APRIL 2022

15. LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:

Between one and five years
In more than five years		 2022
£
3,130,000
-
3,130,000		 2021
£
130,000
3,000,000
3,130,000

The Charity has a contract with a provider of the distribution platform for Freeview costing £250,000 net per month, running until 31 January 2027. This is guaranteed by TCCSA, a US based Charity that has shared beliefs and values.

The Charity leases studio space from Voluntary Sector Centres, a charity with Trustees in common, at open market value.

16. MOVEMENT IN FUNDS

Unrestricted funds
General fund
TOTAL FUNDS
Net movement in funds, included in the above are as follows:
Unrestricted funds
General fund
TOTAL FUNDS		 At 5.4.21
£
6,150,245
6,150,245
Incoming
resources
£
8,444,734
8,444,734		 Net
movement
in funds
£
1,626,947
1,626,947
Resources
expended
£
(6,817,787)
(6,817,787)		 At
4.4.22
£
7,777,192
7,777,192
Movement
in funds
£
1,626,947
1,626,947

continued...

Page 18

GOVERNANCE MINISTRIES CHARITY

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 4 APRIL 2022

16. MOVEMENT IN FUNDS - continued

Comparatives for movement in funds

At 5.4.20
£
Unrestricted funds
General fund
4,800,152
TOTAL FUNDS
4,800,152
Comparative net movement in funds, included in the above are as follows:
Incoming
resources
£
Unrestricted funds
General fund
7,439,587
TOTAL FUNDS
7,439,587		 Net
movement
in funds
£
1,350,093
1,350,093
Resources
expended
£
(6,089,494)
(6,089,494)		 At
4.4.21
£
6,150,245
6,150,245
Movement
in funds
£
1,350,093
1,350,093

A current year 12 months and prior year 12 months combined position is as follows:

Unrestricted funds
General fund
TOTAL FUNDS		 At 5.4.20
£
4,800,152
4,800,152		 Net
movement
in funds
£
2,977,040
2,977,040		 At
4.4.22
£
7,777,192
7,777,192

A current year 12 months and prior year 12 months combined net movement in funds, included in the above are as follows:

Unrestricted funds
General fund
TOTAL FUNDS		 Incoming
Resources
resources
expended
£
£
15,884,321
(12,907,281)
15,884,321
(12,907,281)		 Movement
in funds
£
2,977,040
2,977,040

continued...

Page 19

GOVERNANCE MINISTRIES CHARITY

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 4 APRIL 2022

17. RELATED PARTY DISCLOSURES

Related party transactions are as described in the Trustee's Report.

In addition :

During 2019, an investment of £1,000,000 was made in Ori International LLC, a company incorporated in the US, Company number 6699890. This is a startup video on demand Christian media platform .

During the current year, this investment was transferred into Governance Ministries Limited, a wholly owned subsidiary, and is now showing as an intercompany loan debtor at the year end

Whilst this platform is not yet up and running, the Trustees are of the opinion that there is no impairment in respect of this loan at the balance sheet or sign off date.

The Charity has also transferred its investment in Mansion Garden Estates Limited into a wholly owned subsidiary, Governance Ministries 2 Limited during the year. This represents a shareholding of 18.57% at the year end and is not considered by the Trustees to be in any way impaired at the year end. The purpose of this investment is to assist in developing the "Life Campus" project alongside its visionary partner, Voluntary Sector Centres.

This investment is also now showing as an intercompany loan debtor at the year end

Page 20

GOVERNANCE MINISTRIES CHARITY

DETAILED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 4 APRIL 2022

INCOME AND ENDOWMENTS
Donations and legacies
Donations, gifts & offerings
Grants
Economic activities in furtherance of the Charity Objects
Contribution used to help meet operating
commitments
Broadcast airtime sales
Programme sponsorship
Airtime spots & advertising sales
Recharged expenses
Investment income
Rents received
Deposit account interest
Total incoming resources
EXPENDITURE
Other trading activities
Wages
Pensions
Rent of studios
License & EPG costs
Programme costs
Freeview/Globecast airtime
Charitable activities
Wages
Pensions
Technical equip & support
Donations
Fundraising expenses
Carried forward		 2022
£
1,661,920
1,484
1,663,404
4,013,070
2,360,302
208,200
194,025
-
6,775,597
5,733
-
5,733
8,444,734
268,749
5,489
120,500
502,457
2,227,680
2,496,707
5,621,582
129,702
3,660
19,318
345,233
25,338
523,251		 2021
£
1,646,434
14,222
1,660,656
3,155,200
2,084,069
211,950
222,273
97,698
5,771,190
7,645
96
7,741
7,439,587
264,835
4,352
120,500
411,545
1,864,476
2,599,044
5,264,752
120,027
3,707
6,242
122,095
22,120
274,191

This page does not form part of the statutory financial statements

Page 21

GOVERNANCE MINISTRIES CHARITY

DETAILED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 4 APRIL 2022

Charitable activities
Brought forward
Life Campus project costs
Living Seeds project costs
Support costs
Management
Equipment hire
Office rent & running costs
Insurance
Telephone
Postage and stationery
Advertising
IT & software
Travel & subsistence
Repairs & renewals
Depreciation of furniture & equipment
Motor vehicles
Depreciation of computer & technical equipment
Governance costs
Wages
Pensions
Auditors' remuneration
Management recharge
Legal & professional fees
Finance & sundry charges
Total resources expended
Net income		 2022
£
523,251
5,938
-
529,189
3,127
15,821
6,648
11,631
88,223
121,655
3,298
21,365
31,197
5,767
925
17,342
326,999
120,743
1,125
7,900
90,000
101,636
18,613
340,017
6,817,787
1,626,947		 2021
£
274,191
2,169
966
277,326
1,320
12,240
9,412
13,925
107,661
83,957
5,779
5,183
12,399
5,098
-
24,985
281,959
97,363
-
8,335
90,000
52,519
17,240
265,457
6,089,494
1,350,093

This page does not form part of the statutory financial statements

Page 22