:
REGISTERED COMPANY NUMBER: 03237328 REGISTERED CHARITY NUMBER: 1058661
Report of the Trustees and
Financial Statements
for the Year Ended 31 March 2021
for
Action International Ministries (UK)
SB&P Chartered Accountants Oriel House 2/8 Oriel Road Bootle Merseyside L20 7EP
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Action International Ministries (UK)
Contents of the Financial Statements for the Year Ended 31 March 2021 a ee ee ce
| Page | |||
|---|---|---|---|
| Report ofthe Trustees | 1 | to | 8 |
| Independent Examiner's Report | 9 | ||
| Statement of Financial Activities | 10 | ||
| Balance Sheet | 11 | ||
| NotestotheFinancialStatements | 12 | to | 18 |
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Action International Ministries (UK)
Report of the Trustees for the Year Ended 31 March 2021 eei a CCO—CO—C‘“(“‘“(‘(RNNOUNN
The trustees who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the financial statements of the charity for the year ended 31 March 2021. The trustees have adopted the provisions of the Statement of Recommended Practice SORP "Accounting and Reporting by Charities" (FRS 102).
OBJECTIVES AND ACTIVITIES Objectives and aims The Charity is established to:
- (a) promote the Christian faith and to proclaim the Gospel of Jesus Christ throughout the world by:
(i) promoting and encouraging the Christian evangilisation of people throughout the world; and
(ii) promoting and encouraging standards of behaviour which accord with the doctrines of the Christian faith.
- (b) relieve poverty and sickness
(c) advance education
We have referred to the guidance contained in the Charity Commission's general guidance on public benefit when reviewing our aims and objectives and in planning future activities. In particular, the trustees consider how planned activities will contribute to the aims and objectives they have set.
Human Resources for Service in Action Countries During The past year of operation, the Covid pandemic has impacted all areas of mission activity. Donations were down, Staff furloughed and we operated the office weekly on a skeleton staffing basis, working from home on overseas communications where possible.
Recruitment suffered as we received fewer online and direct office enquiries and applications for short term and long-term service with ACTION for various overseas roles within the mission. Short and career missionaries already accepted for service had to postpone and some withdraw from going overseas until situations clarify because of the operational restrictions preventing them to travel.
Although promotion of roles in recruitment is made on the mission's website and in hard and e-copy mission recruitment agencies, due to the ongoing pandemic this continued decline impacts on the number of long-term workers being fielded from the UK and Europe continues. Given the now smaller Christian contingent in the UK and Europe, difficulties continue in adding manpower for our home office and we are drawing fewer enquiries for overseas ministries in ACTION. This obviously also knocks on into mission turnover. There has been some limited movement and new deployment continuing from by our associated North American ACTION Fellowship offices.
The recruitment process requirement for long term service, requiring support raising by the applicant is still proving to be the greatest obstacle to several potential applicants. This is becoming a greater problem for churches and fellowships in the UK during Covid as churches have been closed, so applicants can't raise their historical mission support budgets due to lower church returns and tighter financial requirements.
The mission experienced it's most difficult operation period historically with uncertainty remain on pandemic issues like restrictions both in UK, Europe and overseas.
ACHIEVEMENT AND PERFORMANCE
Charitable activities
The continuing economic recession has meant that operationally for ACTION (UK), the Mission faced another difficult financial year with attendant and ongoing recruitment issues.
A small decrease in overall annual income by less than 1%_ in the last financial year. This was foreseen, in a predicted forecast for a similar level of the general or designated fund donations, to specific projects and workers.
FINANCIAL REVIEW
Principal funding sources
Principal funding sources are donations from the public to fund the various ministries and projects throughout the world.
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Action International Ministries (UK)
Report of the Trustees for the Year Ended 31 March 2021
FINANCIAL REVIEW
Reserves policy The trustees have reviewed the reserves of the charity.
Unrestricted reserves are needed:
(a) to provide funds which can be designated to specific projects to enable these projects to be undertaken at short notice and
(b) to cover administration, fund raising and support costs without which the charity could not function. The trustees consider it prudent that unrestricted reserves should be sufficient:
To cover two years administration costs, apart from salaries of employees, who are responsible for raising enough funds to cover their own costs.
Unrestricted reserves are currently outside that range. In terms of providing two years, the trustees feel that our aim is to return unrestricted reserves to their target level in the near future.
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: Action International Ministries (UK)
Report of the Trustees for the Year Ended 31 March 2021
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FINANCIAL REVIEW
ADMINISTRATION AND OPERATING FINANCES
The continued loss of some key office workers and a board member through retirement, death or ill health and relocation, in recent years, has reduced our office administration potential. One new board member was appointed in 2021.The search continues also for new full time and volunteer lead administration workers, which who continue to provide administration support but during covid is proving difficult. Currently the office is manned by two full time voluntary missionary workers and three part- time volunteers, including some additional day assistance from members of the ACTION (UK) board members. Covid in March has meant the furloughing of some volunteer workers. This last year has seen continued ministry consolidation and streamlining of operations at the Wallasey office and refining of data records held and new SM computer communication systems introduced. ACTION made contacts with several new churches and organisations in the immediate region and throughout the UK. The programme of promotional and informative deputation meetings to existing churches continues with a few new partnering churches reached and beginning support being developed, and generated, by the acting current Executive Director and some board members. This has generated some new donations and support. Promotion is made through bi-monthly hard copy and E-copy communications and social media options.
The Board has, due to covid, however struggled, in the present economic and pandemic climate, to strengthen the administration team. They have not yet been able to secure additional management workers yet to serve with the team in the UK office. The critical generational need to find long-term personnel for the directorships and administration roles remains and will be addressed in the coming year by the new Executive Director (designate). This is especially true in the area of servicing the ongoing future administration, promotion and development and communications for all areas of the mission's activities, for the longer term.
FINANCES
Some further dedicated historical generational supporter donor giving has been lost through death, or other factors including economic, beyond our control and has had impact on the mission's monthly finances. The base funding however, for most ACTION specific projects, missionary and ministry income areas continues to be maintained at manageable monitored budgetary rolling funding levels, until new projects come on stream. This has ensured continuing levels of overseas funding. The financial turnover remains healthy, with sufficient operational and funding and ministry and project finances continuing, especially for operational continuity and activity into the next financial year and working to have provision for an additional two years reserve funding, in line with Government recommended operating directives, a strategic contingency plan for elements of funding within our general funding and discretionary grants area within the ACTION Fellowship.
This is being set aside monthly, from general and non-allocated funds, to ensure operational stability plus continuity and viability of administration and ministry operations, can be sustained for a period of at least three years. The Board remain generally confident that in the year ahead, we will see continued support for the development and safeguarding of the Mission's operational interests, both at home and overseas, and future especially in our own world in region European areas like Eastern Europe and the Middle East, including strengthening of the teams in Ukraine and Israel country regional areas.
The overall operational ministry fund balances continue to remain healthy, due mainly to ACTION's no-debt and volunteer policy. This policy also requires all workers to either volunteer their time, or, raise their own personal support for ministry, and work project funds which are then channelled and receipted through the mission's accounts income and expenditure, as designated.
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Action International Ministries (UK)
Report of the Trustees for the Year Ended 31 March 2021
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FUTURE PLANS
During The past year of operation, In Recruitment terms. We received fewer office enquiries and applications for short term and long term service with ACTION for various overseas roles within the mission, than for many years. Again the raising of funds has been a critical issue for many, who have enquired. In March 2020, all things changed in the UK, due to the Covid 19 Pandemic. The immediate effect was the cancellation of service trips for approved short termers due to go out to serve with ACTION, overseas. These have been postponed until summer 2021. Additionally short term workers, out on their field of service were gradually brought home to the UK.
The recruitment process requirement for long term service, requiring support raising by the applicant is still proving to be the greatest obstacle to several potential applicants. This is becoming a greater problem for churches and fellowships in the UK as they continue to reduce their historical mission support budgets due to tighter financial requirements.
NEW COUNTRY DEVELOPMENT
Supporting ACTION and partner projects in ACTION from UK, continues to be a major challenge as our income declines, budgets are reviewed and expenditure needs continues to grow in other historical ACTION world regional areas, following growth and development into new countries. . Because of this we limited in our 2020 /21 financial year, our overseas discretionary funding transmissions monthly funding overlaps, which go alongside designated transmissions.
Our March International Council meetings went virtual online and similar communications maintained with several partner and ACTION's own NGOs in Spain, Croatia, Israel and other related Ministry countries worldwide. Despite the ongoing pandemic, ACTION (UK) has set in place policy procedures aimed at the continued strengthening and consolidation of existing and new country operation and bases, with limited additional support to new ones like ACTION South Africa and other African ACTION countries, Costa Rica and Peru, Pakistan, Nepal India.
This includes several new and existing ministries and projects under agency networking agreements with ACTION and other registered partner networking agencies, with whom we have agency agreements in several countries, especially where ACTION does not have a direct registered operational base. A ministry feature was the continued support of humanitarian aid and supportive counselling ministries to those in refugee camps in NE Iraq where three ACTION workers and a _ national team minister there from a base in Erbil. All ACTION entities have engaged with Covid Disaster Relief Programmes additionally with support for ongoing ministry, project developments in existing fields like India, the Philippines, Uganda, Zambia, Malawi. The Latin American base ACTION countries especially Brazil and Colombia continue to also get such major supports. Historically Africa Latin-America, and Philippines and Europe, have been our largest fields of operation, and have always been, particularly well supported from our discretionary rolling funds base. The continuity funding of the feeding and relief and development programmes in various countries like Malawi, Uganda, Philippines and Nepal has assisted greatly the efforts being made towards ameliorating the effects of drought, famine and the Covid pandemic on several continents.
The Special emergency famine relief projects in Africa, as well as relief in Nepal and Cuba Latin-America (Venezuelan refugees) and the Middle East to help displaced camp and community refugees in these countries was also given continued discretionary grant funding by ACTION (Uk). Specific development ongoing news of our corporate ACTION relief operations, projects and ministries is carried and sent to ACTION (UK) Supporting fraternity, on our main website www.actionintl.org and in our bi-Monthly Hard and E-copy Newsletters in UK.
Policy implementation of ACTION's required safeguarding policies in each country were reviewed.
MINISTRY GROWTH ACHIEVEMENTS
Children in Crisis ministries remains a special development focus for funding from UK, especially in Europe, Ukraine and Israel with new project ventures being supported in The Philippines and Mexico. A new website for this has special ministry been developed. A new Coordination team for these ministries, with also safeguarding policy review briefs has been appointed This gives the wider country and ministry involvement areas further consideration. CIC FOCUS magazine will be regularly produced in future be published by the CIC Coordination group . Safeguarding policies have been implemented in every ACTION country. Although Covid restrictions impacted many of our ministry centres abroad. Additional new small-scale micro-businesses continued to be set up and supported to help the impoverished communities served by ACTION communities in Latin America, Asia and Africa.
oeegCSC
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Action International Ministries (UK)
Report of the Trustees for the Year Ended 31 March 2021
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The various street children ministries under the urban street teams continue in major third-world cities, like Manila, Philippines. These ACTION teams were most pro-active in Eastern Europe, S.E. Asia, and Latin America. In Africaa new country development in this ministry area has been set up. Networking with church-based community groups, they undertook feeding and relief programmes throughout the year. This was in addition to the regular street encounter, counselling and rescue ministries. Although some programmes have had to be cancelled by venues, due to Covid, some limited annual easter and summer camp or feeding programmes were held throughout the year, ranging from 70 to 250 children weekly attended in the Philippines, and in Africa. Supporters covered all budget targets for these developments, especially for major ministry projects in Colombia, Ecuador, Portugal. Children in Crisis Summer camps were held in Colombia, Philippines, Mexico Ukraine and in ACTION African countries, all though countries have been warned of possible annual budget reductions in the year ahead, because of the Covid pandemic effect on all areas of ministry and funding. Despite uncertainty on financial donations for the year ahead, our giving to income-generating projects, established in ACTION Countries and with networking partners, were also considered and approved but generated support from the UK, has continued, albeit on a reduced basis. Newly developed life skills empowering projects ranged from overnight shelters and breakfast feeding programmes for children, older youth and adults, in and Odessa, Ukraine, Merida Mexico and Manila, Philippines. Project Developments Following completion of several major ACTION projects in 2019-20, other developments within the ACTION community ministry centres in Chapineros, Ciudad Bolivar, Camara, and Suba Berlin squatter township areas of Bogota, Colombia and the older street youth shelter and centre in Odessa, Ukraine, continued to receive support from UK, but progress ion some projects has been delayed due to Covid. The mission also continued with help in Asia and also the ongoing support of a new primary school and secondary Christian school near Varanasi, Northern India run by two of ACTION workers and their teaching team based there.
ACTION also continued to develop its children in crisis preventative programmes in Colombia and The Philippines These projects are aimed at providing free education, social welfare, and occupational training. They seek to prevent children from seeking a life on the streets owing to poor family living conditions. The ACTION educational sponsorship programmes for children operating in Africa Latin-America and The Philippines, operates alongside vocational training centres and workshops are geared for training older street youth in a vocational alongside life-skills and Christian education leaving after one year with a certified diploma.
The dedicated mission website www.actionintl.org gives detailed reports and information on these and other projects. Further church and college databases for contact were also initiated.
PASTORAL DEVELOPMENT - BOOKSHARE (UK)-EVANGELISMI/LITERATURE MINISTRY
ACTION (UK) has three principal workers engaged in this vital teaching and training work Religious education, literature distribution and direct publication are now well established in most countries where ACTION is operational. The pastoral leadership development ministry (PLDM and BOOKSHARE division of the work, ensured that the practical teaching printing and distribution of bibles and new and second-hand study books and children ministry literature objectives continued to be achieved. Again this can be seen and viewed with the reports, on our main ACTION ministry website and on www.equippastors.org and www.scm-action.org and increasingly on our main website www.actioninternational.org ]
PLDM Ministry UK director, Paul Clough returned to UK from PLDM Teaching ministry Albania and Leader and ACTION (UK) Chairman, Dr John Farren also returned safely from Malawi and Zambia teaching trips as the Covid pandemic emerged, having successfully completed their teaching and visit itineraries.
The BOOKSHARE (Uk) ministry continues in three principal areas: 1, Funding and publication for study book titles for printing in Cuba, Cambodia Colombia, India and Indian subcontinent, Africa, the Philippines plus Europe and the Middle East. 2. The free distribution ministry of pre-packed new and second-hand study books worldwide for pastors, teachers, and Christian workers. There are also a new online free bible studies, commentaries and evangelism courses available to enquirers in the UK and overseas.
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Action International Ministries (UK)
Report of the Trustees for the Year Ended 31 March 2021
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- The free distribution of study and course material by hard copy, CD or e-mail document attachment. Our Canada associated ACTION run mission partner LTMP publishes and produces and distributes commentaries and study books in different languages which are also distributed and used or sent directly to a number of ACTION countries. They are now also available online.
The UK office continues to assist mostly financially with the overseas publishing division's production programme budget needs and also hasa direct literature-sending arm for new bibles and study books.
CONSULTATION ADVISORY SERVICE AND AFFILIATION MEMBERSHIP
As a historic founder member of two UK consortia, namely Children in Crisis and European Street Children, ACTION has continued membership and a strong working input with the consortia on issues. Our membership also allows workers in ACTION to participate with CSC in any global networking and related country-based activity. ACTION is not directly constituted to do direct advocacy work but provides continued free consultancy ministry advice based on our operational experience on field, to the UK Consortium for Street Children based in London. Additional help was given to Viva Network and CICM in Oxford. These advocacy groups, on behalf of members, are constituted and prescribed to additionally engage at government level, with all parliamentary groups on children in crisis matters and with the UN. Several ACTION guideline manual publications are available on the website.
A wider agency-networking and associate-missionary programme continues to be developed to avoid duplication of effort and greater concentration of the work funds by partnering agreements with other UK and European missions. This strategy affords opportunities to enlarge the programme for the secondment of workers and allows the enlargement of new-field development especially within Europe and other regional areas or continents.
STRUCTURE, GOVERNANCE AND MANAGEMENT Governing document
The charity is controlled by its governing document, a deed of trust, and constitutes a limited company, limited by guarantee, as defined by the Companies Act 2006.
Recruitment and appointment of new trustees
Home Office
Lastest Directorate Succesion news The ACTION (UK) board was successful in March 2021 obtaining the designate services of a new UK worker for the executive director for its UK office and future operation. He will be in the process of developing a new generational succession team of new workers in the mission to take ACTION into the next decade. A further four, full and short-term workers, were though recruited for Colombia, Philippines and Brazil, by the UK recruitment team. Most applicants again failed to reach the final application stage of service processing owing to ACTION's criteria on this stated need. This reflects the financially based-application concerns of applicants. We received no new enquiries for the UK based full time office roles which are proving difficult to fill. Many enquirers found a tension and difficulty with the Mission's policy on support-raising requirements for especially long-term service overseas or at home. The mission is run entirely by part and full-time volunteers. The volunteer Recruitment Manager role was vacated and is being handled currently by other UK volunteer workers. Overseas
The general level of recruitment career placement enquiries is gradually falling due to the present Covid pandemic financial constraints faced by applicants in UK affected by the economy and BREXIT uncertainty. The required faith-support raising ethos that prospective candidates face, is a challenge, and does not meet some of their expectations. Many felt unable to raise support in the continued depressed economic climate. They therefore did not find this approach as attractive. This resulted this last operational year in fewer applicants reaching even the final interview stage.
Related parties
There were no related party transactions during the year.
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. Action International Ministries (UK)
Report of the Trustees for the Year Ended 31 March 2021
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STRUCTURE, GOVERNANCE AND MANAGEMENT Risk management
The trustees have a risk management strategy which comprises:
- an annual review of the risks that the charity may face, - the establishment of systems and procedures to mitigate those risks identified in the plan, and - the implementation of procedures designed to minimise any potential impact on the charity should those risks materialise.
The trustees have a duty to identify and review the risks to which the charity is exposed and to ensure appropriate controls are in place to provide reasonable assurance against fraud and error.
Two major areas which the charity are exposed to are:
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Completeness of income
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Restricted funds
These areas of risk are due to the large number of cash donations received for different funds within the organisation. The trustees have reviewed the controls in place and are satisfied that the risks mentioned above are minimised.
REFERENCE AND ADMINISTRATIVE DETAILS
Registered Company number 03237328 (Not specified/Other)
Registered Charity number 1058661
Registered office
Bethany Hall Balfour Road Wallasey Merseyside CH44 5SQ
Trustees G Edwards - Chairman W Hammons - Vice Chairman | Abraham J Farren RA Farren P Clough (resigned 29 September 2021) D Taylor MP Gilman (appointed 15 July 2020) RP Hughes (appointed 29 September 2021) MJ Rutter (appointed 25 November 2021)
Independent Examiner Suzanne Draper FCCA ACA SB&P Chartered Accountants Oriel House 2/8 Oriel Road Bootle Merseyside L20 7EP
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Approved by order of the board of trustees on oe a ee and signed on its behalf by:
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Action International Ministries (UK)
Report of the Trustees
for the Year Ended 31 March 2021
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Independent Examiner's Report to the Trustees of Action International Ministries (UK)
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Independent examiner's report to the trustees of Action International Ministries (UK) (‘the Company’) | report to the charity trustees on my examination of the accounts of the Company for the year ended 31 March 2021.
Responsibilities and basis of report
As the charity's trustees of the Company (and also its directors for the purposes of company law) you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 (‘the 2006 Act’).
Having satisfied myself that the accounts of the Company are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, | report in respect of my examination of your charity's accounts as carried out under section 145 of the Charities Act 2011 (‘the 2011 Act’). In carrying out my examination | have followed the Directions given by the Charity Commission under section 145(5) (b) of the 2011 Act.
Independent examiner's statement
| have completed my examination. | confirm that no matters have come to my attention in connection with the examination giving me cause to believe:
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accounting records were not kept in respect of the Company as required by section 386 of the 2006 Act: or 2. the accounts do not accord with those records; or 3. the accounts do not comply with the accounting requirements of section 396 of the 2006 Act 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; or
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the accounts have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities (applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)).
| 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.
Suzanne Draper FCCA ACA
SB&P Chartered Accountants Oriel House 2/8 Oriel Road Bootle Merseyside ’ L20 7EP m)2121DARE? scssccesttdincsneessniscasenancennienerncnts
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: Action International Ministries (UK)
Statement of Financial Activities
(Incorporating an Income and Expenditure Account) for the Year Ended 31 March 2021
| eee | eee | eee | eee | eee | eee |
|---|---|---|---|---|---|
| 31.3.21 | 31.3.20 | ||||
| Unrestricted | Restricted | Total | Total | ||
| fund | funds | funds | funds | ||
| Notes | £ | £ | £ | £ | |
| INCOME AND ENDOWMENTS FROM | |||||
| Donations and legacies | 2 | 11,266 | 146,599 | 157,865 | 158,576 |
| Investment income | 3 | - | 19 | 19 | 46 |
| Total | 11,266 | 146,618 | 157,884 | 158,622 | |
| EXPENDITURE ON | |||||
| Raising funds | 4 | 1,311 | - | 1,311 | 1,784 |
| Charitable activities | 5 | ||||
| General Overseas - Grants payable |
884 - |
60,653 98,846 |
61,537 98,846 |
51,880 79,283 |
|
| Total | 2,195 | 159,499 | 161,694 | 132,947 | |
| NETINCOME/(EXPENDITURE) | 9,071 | (12,881) | (3,810) | 25,675 | |
| Transfers between funds | 13 | (7,074) | 7,074 | - | - |
| Netmovement infunds | 1,997 | (5,807) | (3,810) | 25,675 | |
| RECONCILIATION OF FUNDS | |||||
| Total funds brought forward | 3,643 | 282,414 | 286,057 | 260,382 | |
| TOTALFUNDSCARRIEDFORWARD | 5,640 | 276,607 | 282,247 | 286,057 |
The notes form part of these financial statements
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, Action International Ministries (UK)
Balance Sheet
31 March 2021
| 31.3.21 | 31.3.20 | ||||
|---|---|---|---|---|---|
| Unrestricted | Restricted | Total | Total | ||
| fund | funds | funds | funds | ||
| Notes | £ | £ | £ | £ | |
| FIXED ASSETS | |||||
| Tangible assets | 9 | 2,836 | 9,794 | 12,630 | 13,391 |
| CURRENT ASSETS | |||||
| Stocks | 10 | 50 | - | 50 | 50 |
| Debtors Cash at bank |
11 | 776 6,502 |
2,819 273,867 |
3,595 280,369 |
3,009 273,986 |
| 7,328 | 276,686 | 284,014 | 277,045 | ||
| CREDITORS | |||||
| Amounts falling due within one year | 12 | (4,524) | (9,873) | (14,397) | (4,379) |
| NETCURRENT ASSETS | 2,804 | 266,813 | 269,617 | 272,666 | |
| TOTALASSETS LESS CURRENT LIABILITIES | 5,640 | 276,607 | 282,247 | 286,057 | |
| NETASSETS | 5,640 | 276,607 | 282,247 | 286,057 | |
| FUNDS | 13 | ||||
| Unrestricted funds | 5,640 | 3,643 | |||
| Restricted funds | 276,607 | 282,414 | |||
| TOTALFUNDS | 282,247 | 286,057 |
The charitable company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 March 2021.
The members have not required the company to obtain an audit of its financial statements for the year ended 31 March 2021 in accordance with Section 476 of the Companies Act 2006.
The trustees acknowledge their responsibilities for
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(a) ensuring that the charitable company keeps accounting records that comply with Sections 386 and 387 of the Companies Act 2006 and
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(b) preparing financial statements which give a true and fair view of the state of affairs of the charitable company as at the end of each financial year and of its surplus or deficit for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the charitable company.
These financial statements have been prepared in accordance with the provisions applicable to charitable companies subject to the small companies regime.
The financial statements were approved by the Board of Trustees and authorised for issue on Zod f Nee Beh rere and were signed on its behalf by:
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|Abrahamr= Trustee
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The notes form part of these financial statements
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Action International Ministries (UK)
Notes to the Financial Statements for the Year Ended 31 March 2021
- ACCOUNTING POLICIES
Basis of preparing the financial statements
The financial statements of the charitable company, 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 Companies Act 2006. The financial statements have been prepared under the historical cost convention. The charitable company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland’:
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the requirements of Section 7 Statement of Cash Flows;
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- the requirement of paragraph 3.17(d); * the requirements of paragraphs 11.42, 11.44, 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c); * the requirements of paragraphs 12.26, 12.27, 12.29(a), 12.29(b) and 12.29A; * the requirement of paragraph 33.7.
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.
Grants offered subject to conditions which have not been met at the year end date are noted as a commitment but not accrued as expenditure.
Tangible fixed assets
Depreciation is provided to write off the cost of tangible fixed assets over their estimated useful lives using the following rates:
Improvements to property - 2% on cost Fixtures and fittings - 25% on reducing balance
The trustees have made the decision to not apply depreciation to the freehold property. It is the opinion of the trustees that sale price of the property would be greater than the carrying amount held within the accounts.
Stocks
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.
Taxation
The charity is exempt from corporation 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.
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continued...
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Action International Ministries (UK)
Notes to the Financial Statements - continued for the Year Ended 31 March 2021
1. ACCOUNTING POLICIES - continued
Foreign currencies
| Assets and | liabilities in foreign currencies are translated into | sterling at the rates of exchange | sterling at the rates of exchange | sterling at the rates of exchange | sterling at the rates of exchange | ruling | at the balance | |
|---|---|---|---|---|---|---|---|---|
| sheet date. | Transactions in foreign currencies are translated | into | sterling at the rate | of exchange ruling at the date | ||||
| oftransaction. Exchange differences are taken into account in | arriving at the operating result. | |||||||
| 2. | DONATIONS AND LEGACIES | |||||||
| 31.3.21 | 31.3.20 | |||||||
| £ | £ | |||||||
| Donations | 157,865 | 158,576 | ||||||
| 3. | INVESTMENT INCOME | |||||||
| 31.3.21 | 31.3.20 | |||||||
| £ | z | |||||||
| Deposit account interest | 19 | 46 | ||||||
| 4. | RAISING FUNDS | |||||||
| Other trading activities | ||||||||
| 31.3.21 | 31.3.20 | |||||||
| £ | £ | |||||||
| Postage | 934 | 1,319 | ||||||
| Newsletter | 377 | 465 | ||||||
| 1,311 | 1,784 | |||||||
| 5. | CHARITABLE ACTIVITIES COSTS | |||||||
| Grant | ||||||||
| funding | of | |||||||
| activities | ||||||||
| Direct Costs |
(see note 6) |
Support costs |
Totals | |||||
| £.# | £ | £ | £ | |||||
| General | 52,248 | - | 9,289 | 61,537 | ||||
| Overseas - | Grants payable | - | 98,846 | - | 98,846 | |||
| 52,248 | 98,846 | 9,289 | 160,383 | |||||
| 6. | GRANTS PAYABLE | |||||||
| 31.3.21 | 31.3.20 | |||||||
| £ | £ | |||||||
| Overseas- | Grantspayable | 98,846 | 67,177 |
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, Action International Ministries (UK) Notes to the Financial Statements - continued for the Year Ended 31 March 2021
| 6. | GRANTS PAYABLE- continued | GRANTS PAYABLE- continued | ||
|---|---|---|---|---|
| The total grants paid to institutions during the yearwas as follows: | ||||
| 31.3.21 | 31.3.20 | |||
| £ | £ | |||
| Street Children | - General | |||
| 2,875 | 2,313 | |||
| Street Children | - Evangelical | - | 3,247 | |
| Street Children | - Europe | 6,161 | 8,783 | |
| Educational Child Sponsor - Philippines | 3 | 52 | ||
| Project Europe | 12,161 | 6,438 | ||
| Project Colombia | 19,364 | 13,775 | ||
| Child Education Sponsership - Colombia | 9,539 | 8,274 | ||
| Project Asia | ||||
| 17,941 | 7,791 | |||
| Action Feeding | Programme | |||
| 11,822 | 6,001 | |||
| Relief & Development | 11,408 | 9,603 | ||
| Work Fund - |
& D Abraham | |||
| 4,657 | - | |||
| Work Fund - R |
Homenuke | 945 | = | |
| Miscellaneous | Bookshare Grants | 1,946 | = | |
| Project Africa | 24 | 900 | ||
| 98,846 | 67,177 | |||
| 7. | NET INCOME/(EXPENDITURE) | |||
| Net income/(expenditure) is stated after charging/(crediting): | ||||
| 31.3.21 | 31.3.20 | |||
| £ | £. | |||
| Depreciation-ownedassets | 761 | 906 |
- TRUSTEES' REMUNERATION AND BENEFITS
There were no trustees’ remuneration or other benefits for the year ended 31 March 2021 nor for the year ended 31 March 2020.
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;
Action International Ministries (UK)
Notes to the Financial Statements - continued for the Year Ended 31 March 2021
Sn
8. TRUSTEES' REMUNERATION AND BENEFITS- continued
Trustees' expenses
During the year travelling expenses of Enil (2020: £2,907) was paid on behalf of[trustees.]
| 9. | TANGIBLE FIXED ASSETS | |||||
|---|---|---|---|---|---|---|
| Improvements | Fixtures | |||||
| Freehold property £ |
to property £ |
and fittings £ |
Computer equipment z |
Totals £ |
||
| COST | ||||||
| At 1 April 2020 and | ||||||
| 31 March 2021 | 1,600 | 16,202 | 19,751 | 5,022 | 42,575 | |
| DEPRECIATION | ||||||
| At1 April 2020 Charge foryear |
- - |
6,156 324 |
19,553 50 |
3,475 387 |
29,184 761 |
|
| At 31 March 2021 | - | 6,480 | 19,603 | 3,862 | 29,945 | |
| NET BOOK VALUE | ||||||
| At 31 March 2021 | 1,600 | 9,722 | 148 | 1,160 | 12,630 | |
| At 31 March 2020 | 1,600 | 10,046 | 198 | 1,547 | 13,391 | |
| 10. | STOCKS | |||||
| 31.3.21 | 31.3.20 | |||||
| £ | £ | |||||
| Stocks | 50 | 50 | ||||
| 11. | DEBTORS: AMOUNTS FALLING | DUE WITHIN | ONE YEAR | |||
| 31.3.21 | 31.3.20 | |||||
| £ | £ | |||||
| Covenant tax refunds Prepayments and accrued income |
2,819 776 |
2,105 904 |
||||
| 3,595 | 3,009 |
ee Page 15 continued...
Action International Ministries (UK)
Notes to the Financial Statements - continued for the Year Ended 31 March 2021
a8 ——ess—“‘“‘(CSsts™
| 12. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR | |||
|---|---|---|---|---|---|
| 31.3.21 | 31.3.20 | ||||
| £ | £ | ||||
| Grants payable | 9,873 | - | |||
| Accrued expenses | 4,524 | 4,379 | |||
| 14,397 | 4,379 | ||||
| 13. | MOVEMENT IN FUNDS | ||||
| Net | Transfers | ||||
| At 1.4.20 | movement in funds |
between funds |
At 31.3.21 |
||
| £ | £ | £ | £ | ||
| Unrestricted funds | |||||
| General fund | 3,643 | 9,071 | (7,074) | 5,640 | |
| Restricted funds | |||||
| General Ministry Programmes Bookshare |
234,648 37,041 |
(13,962) 1,429 |
7,074 - |
227,760 38,470 |
|
| Office Development | 10,725 | (348) | - | 10,377 | |
| 282,414 | (12,881) | 7,074 | 276,607 | ||
| TOTAL FUNDS | 286,057 | (3,810) | - | 282,247 | |
| Netmovement in funds, included in the above are as follows: | |||||
| Incoming | Resources | Movement | |||
| resources | expended | in funds | |||
| £ | £ | £ | |||
| Unrestricted funds | |||||
| General fund | 11,266 | (2,195) | 9,071 | ||
| Restricted funds | |||||
| General Ministry Programmes Bookshare Office Development |
143,869 2,749 - |
(157,831) (1,320) (348) |
(13,962) 1,429 (348) |
||
| 146,618 | (159,499) | (12,881) | |||
| TOTALFUNDS | 157,884 | (161,694) | (3,810) |
iee“ Page 16 continued...
Action International Ministries (UK)
Notes to the Financial Statements - continued for the Year Ended 31 March 2021
ee
----- Start of picture text -----
13. MOVEMENT IN FUNDS- continued
----- End of picture text -----
Comparatives for movement in funds
| Net | Transfers | |||
|---|---|---|---|---|
| At 1.4.19 | movement in funds |
between funds |
At 31.3.20 |
|
| £ | £ | £ | £ | |
| Unrestricted funds | ||||
| General fund | 4,377 | 2,160 | (2,894) | 3,643 |
| Restricted funds | ||||
| General Ministry Programmes Bookshare Office Development |
205,772 39,151 11,082 |
25,982 (2,110) (357) |
2,893 - 1 |
234,647 37,041 10,726 |
| 256,005 | 23,515 | 2,894 | 282,414 | |
| TOTAL FUNDS | 260,382 | 25,675 | - | 286,057 |
| Comparative net movement in funds, included in the above are as follows: | ||||
| Incoming | Resources | Movement | ||
| resources | expended | in funds | ||
| £ | £ | pa | ||
| Unrestricted funds | ||||
| General fund | 9,153 | (6,993) | 2,160 | |
| Restricted funds | ||||
| General Ministry Programmes Bookshare Office Development |
144,881 4,589 (1) |
(118,899) (6,699) (356) |
25,982 (2,110) (357) |
|
| 149,469 | (125,954) | 23,515 | ||
| TOTALFUNDS | 158,622 | (132,947) | 25,675 |
A current year 12 months and prior year 12 months combined position is as follows:
| Net | Transfers | |||
|---|---|---|---|---|
| At 1.4.19 | movement in funds |
between funds |
At 31.3.21 |
|
| £ | £ | £ | £ | |
| Unrestricted funds | ||||
| General fund | 4,377 | 11,231 | (9,968) | 5,640 |
| Restricted funds | ||||
| General Ministry Programmes Bookshare Office Development |
205,772 39,151 11,082 |
12,020 (681) (705) |
9,967 - 1 |
227,759 38,470 10,378 |
| 256,005 | 10,634 | 9,968 | 276,607 | |
| TOTAL FUNDS | 260,382 | 21,865 | - | 282,247 |
| Fa —s—“‘CsCSCS |
||||
| Page17 | continued... |
‘
Action International Ministries (UK)
Notes to the Financial Statements - continued for the Year Ended 31 March 2021
- MOVEMENT IN FUNDS- continued
A current year 12 months and prior year 12 months combined net movement in funds, included in the above are as follows:
| Incoming | Resources | Movement | |
|---|---|---|---|
| resources | expended | in funds | |
| £ | £ | £ | |
| Unrestricted funds | |||
| General fund | 20,419 | (9,188) | 11,231 |
| Restricted funds | |||
| General Ministry Programmes Bookshare Office Development |
288,750 7,338 (1) |
(276,730) (8,019) (704) |
12,020 (681) (705) |
| 296,087 | (285,453) | 10,634 | |
| TOTALFUNDS | 316,506 | (294,641) | 21,865 |
- RELATED PARTY DISCLOSURES
There were no related party transactions for the year ended 31 March 2021.
- RESTRICTED FUNDS
General Ministry Programmes
The purpose of these funds are to fund the individual ministry programmes and projects throughout the world.
Bookshare
The purpose of this fund is to fund the Pastoral Leadership Development Ministries, which includes training conferences. It also funds Christian Book Publishing activities.
Office Development
The purpose of this fund is to fund the refurbishment and replacement of office equipment relating to the head office in Wallasey.
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