OpenCharities

This text was generated using OCR and may contain errors. Check the original PDF to see the document submitted to the regulator.

2020-12-31-accounts

Christ Embassy

Trustees Annual Report and Financial Statements

for the year ended 31 December 2020

Registered Charity Number 1059247

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

CHRIST EMBASSY

CONTENTS

Page
Charity information 1
Trustees’ report 2
Independent auditors’ report 7
Statement of financial activities 9
Balance sheet 10
Statement of cash flows 11
Accounting policies 12
Notes to the financial statements 15

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

CHRIST EMBASSY

CHARITY INFORMATION

Trustees Pastor Gabriel Adesina
Mr Ikemefuna Oluwarotimi Nwankpele
Mrs Tolulope Moradeke Osuntubo
Dr Victor Uba
Principal office 45 Thames Road, Barking, London, IG11 0HQ
Registered charity number 1059247
Chairman of the board of Trustees Pastor Gabriel Adesina
Senior Management Pastor Elizabeth Akinwolemiwa
Pastor Obi Chiemeka
Pastor Tayo Ojo
Pastor Kemi Adesina
Auditors Blue Spire Limited
Cawley Priory
South Pallant
Chichester
West Sussex
PO19 1SY
Bankers HSBC Bank Plc
Barclays Bank Plc
Lloyds Bank Plc
Solicitors Palmers Solicitors
Ascension Chambers, Fleming Road
Chafford Hundred
Grays RM16 6HH

Page 1

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

CHRIST EMBASSY

TRUSTEES’ REPORT

The Trustees present their annual report together with the audited financial statements of Christ Embassy (the ministry and the group) for the year ended 31 December 2020. The Trustees confirm that the annual report and financial statements of the ministry and the charity comply with the current statutory requirements, the requirements of the ministry and the group's governing document and the provisions of the Charities SORP 2015 (FRS102).

STRUCTURE, GOVERNANCE AND MANAGEMENT

Constitution

Christ Embassy was established by Trust Deed on 23rd October 1996. The ministry was registered as a Charity on 19th November 1996 with registration number 1059247.

Method of appointment or election of Trustees

New Trustees may be appointed by a resolution of the Trustees usually dependent on the skills and experience needed by the Charity. There must be a minimum of three Trustees and a minority of the Trustees may be remunerated if necessary.

Policies adopted for the induction and training of Trustees

The Trustees meet quarterly to review their legal obligations under charity law, the growth of the Ministry and its financial performance. All new Trustees receive an induction and training is provided for all Trustees on an ad hoc basis.

Organisational structure and decision making

The churches are structured into zones with a zonal Pastor heading group of Churches. The Zones have Zonal Managers who are responsible for the administration of the churches within their Zone and executing decisions made by the Trustees. As an example, invoices are raised and recommended for approval by the pastors and coordinators in charge of each church branch of the Charity. This is then passed to the Zonal Pastors and then to The Trustees, who give final approval before payments are made.

The Board of Trustees oversees all the church chapters and their roles within the guidelines of the Trust Deed. The Board of Trustees are mandated to meet at least twice a year to review the progress of the Charity and set policies and plans for the future. In some instances, at least three of the Trustees meet to take urgent decisions necessary for the smooth running of the Charity.

Subsidiary and related party relationships

The subsidiary ceased trading in November 2016 and procedures for winding up of the company began.

Christ Embassy charity is part of Christ Embassy Worldwide International. The relationship between the two entities is spiritual for guidance purposes.

Arrangements for setting pay

Remuneration of key management personnel is proposed by zonal pastors, based on local remuneration levels for similar roles, and approved by the trustees.

Risk management

The major activities and issues of the Ministry are subject to review at the Trustees’ meetings. The Ministry faces various risks to which the Trustees have systems in place to mitigate:

Page 2

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

CHRIST EMBASSY

TRUSTEES’ REPORT

OBJECTIVES AND ACTIVITIES

The objectives of the Trust are:

The Ministry has the general aim of contributing to the quality of life of the people of the England and Wales and other parts of the United Kingdom and the rest of the world according to the Christian faith as specified in its statement of beliefs.

Strategies for achieving objectives

The strategies employed to achieve the Ministry’s objectives in line with public benefit are as follows:

Activities in furtherance of objectives and for public benefit

All chapters were involved in holding special outreach activities in their locations. Through these activities, more people joined the Ministry and thus the ability to enhance the work of building a better world continued to increase throughout the year. We were able to reach many more people in diverse locations through our online platforms. The Ministry continued to render help to people in diverse kinds of hardship and kept to its earlier adopted grant making policy which includes the following:

Our short-term objectives are success in bringing enlightenment of the gospel to many, reaching more communities both in and outside of the United Kingdom, growing our established churches and providing more services/rendering help to the community with various initiatives like day of service.

Our Long-term objective to see to the Christianization of the society at large with an increased uptake of Christian values, evidenced by many more people coming to the knowledge of Christ and attending church services.

Page 3

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

CHRIST EMBASSY

TRUSTEES’ REPORT

The Trustees confirm that they have had due regard to the guidance issued by the Charity Commission on public benefit when planning their objectives and activities.

Criteria/Measures to assess success

Some of the measures to assess our success are new contacts made, souls that received Christ, materials distributed, increased participation in all existing churches resulting in the birth of new churches.

Grant making policies

A grant making policy is in place and covers two streams (Ministry in Britain Grant Stream and Ministry Overseas Grant Stream). The Grant committee is currently made up of the Trustees and grants are reviewed by the Trustees periodically to ensure that they adequately meet the objectives of the Charity.

A number of grants payable in the year 2020 were given in support of the Ministry’s missionary campaigns held around the world, and also offering pastoral care to members in various chapters within the Charity. In addition, spiritual guidance and counsel were given where such needs arose.

Volunteers

The Ministry relies heavily on unpaid voluntary workers to undertake a wide range of its activities. These activities include pastoring, church maintenance, running the book/tape stands, organising special programs, and assisting in administrative duties amongst many others. All unpaid volunteers are members of Christ Embassy. Each volunteer works an average of 10 hours per week. During the year, the lock down and restrictions as a result of COVID-19, made it impossible for most of our volunteers to participate in some of the administrative work they will usually do. This in turn affected the functioning of the Charity.

ACHIEVEMENTS AND PERFORMANCE

The Charity was able to maintain its strategy of weekly meetings even during the recent COVID-19 pandemic through the use of various online platforms. Weekly meetings were held thus providing a conducive atmosphere for members to grow spiritually whilst also offering the opportunity to invite first timers and encourage them to become members. Counselling sessions were available for members of the ministry thereby catering for members’ spiritual and emotional stability particularly during the lock-down. Special teaching programs were placed on air through the use of television slots on Loveworld Television. The objective of the Charity to reach maximum numbers of people within the United Kingdom and the rest of the world was hugely achieved via the television medium as we continued to take the message of the gospel into homes when nations were locked down. The free distribution of ministry materials such as the daily devotional titled Rhapsody of Realities, Healing to the Nations Magazines, Now that you are born again in e-formats was intensified to help in bringing faith and hope to many around the world. The daily devotional, Rhapsody of Realities was an invaluable tool in bringing hope, faith and love to many at a time that was particularly challenging for many and one million e-copies were distributed. These helped to further advance the Christian faith as enunciated in the trust deed of the Charity. Gifts of food and clothing were also sent to hostels and the homeless.

The charity planted several additional online home cell groups and outreach fellowships in the UK and several other countries. The planting of new home cell groups and outreach fellowships enables the charity to fulfil its objective of providing places of worship for fellowship of evangelical Christians and a base from which they can advance the Christian faith by proclaiming the good news of salvation of Jesus Christ, to their surrounding areas and beyond.

Fundraising activities/Income generation

All the funds required for the support of all the activities of the Charity were raised through the principles of prayer and direct giving of members. Fund raising was exclusively carried out by special committees who are members of ‑ the Ministry on a non remuneration basis and no external consultant or body was employed for the purpose of fund raising throughout 2020.

Page 4

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

CHRIST EMBASSY

TRUSTEES’ REPORT

FINANCIAL REVIEW

Total incoming resources amounted to £6,858,979. The charity’s subsidiary Christ Embassy Limited did not trade during 2020. Total expenditure for the charity was £5,686,521.

Impact of significant events

The lock-down and restrictions in the year meant that many of our churches were not able to meet physically in their venues and this led to a reduction in the Charity’s expenses.

Reserves policy

The charity’s policy is to build and maintain sufficient reserves to cover 3-4 months of recurrent expenditure considered to be approximately £1.1m.

At the balance sheet date, the charity’s reserves, having taken into account restricted funds, fixed assets and the revaluation reserve were a deficit of £1,704,702.

In order to recover the deficit on reserves the trustees are considering the use and disposal of fixed assets, in particular buildings not in current use, together with the use of restricted funds for the purposes they have been received.

PLANS FOR THE FUTURE

As part of our objectives of advancing the Christian faith in the UK and around the world, we intend to continue to strengthen our existing churches and outreach fellowships. This will be done by the establishing of Home cell groups and regular trainings for leaders through seminars and conferences

We will be using various online platforms to reach many more people particularly those in locations outside of the borders of the United Kingdom. One of such platforms is to have virtual churches where people from all around the world can participate in our church services and teachings. We already established several online platforms for our churches and the pandemic of 2020 enabled us to reach even many more in their homes with the gospel.

The daily devotional, ‘Rhapsody of Realities’ has been of great blessings to many all around the world and we will be sponsoring both hard copies and e-copies of the Rhapsodies. The E-Copies will be made available for free download in strategic countries to aid the propagation of the gospel of Christ.

STATEMENT OF TRUSTEES’ RESPONSIBILITIES

The trustees are responsible for preparing the Trustees’ Report 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 & Wales 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 of the charity for that period. In preparing these financial statements, the trustees are required to:

Page 5

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

CHRIST EMBASSY

TRUSTEES’ REPORT

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, 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.

The trustees are responsible for the maintenance and integrity of the charity and financial information included on the charity’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

This report was approved by the Trustees on 25 July 2022 and signed on their behalf by:

…………………………………………..

Trustee

Page 6

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

CHRIST EMBASSY

INDEPENDENT AUDITOR’S REPORT

Independent Auditor’s Report to the Trustees of Christ Embassy

Opinion

We have audited the financial statements of Christ Embassy (the ‘charity’) for the year ended 31 December 2020 which comprise of the Statement of Financial Activities, Balance Sheet, Statement of Cash Flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

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 auditor 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 other information comprises the information included in the trustees annual report, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information contained within the annual report. 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.

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 course of 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 in relation to which the Charities (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement , the trustees are responsible for the preparation of the financial statements and for being satisfied that they 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.

Page 7

CHRIST EMBASSY

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

INDEPENDENT AUDITOR’S REPORT

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.

Auditor responsibilities for the audit of the financial statements

We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with regulations made under section 154 of that Act.

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 an auditor’s report 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.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

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 auditor’s 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.

Cawley Priory South Pallant Chichester West Sussex Blue Spire Limited, Statutory Auditor PO19 1SY Date 27 July 2022

Blue Spire Limited is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006.

Page 8

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

CHRIST EMBASSY

STATEMENT OF FINANCIAL ACTIVITIES

Note
INCOME AND ENDOWMENTS FROM:
Donations and legacies
1
Subsidiary assets released
Other trading activities
2
Investments
3
Charitable activities
4
Other - profit on sale of assets
Total
EXPENDITURE ON:
Raising funds
5
Charitable activities
6
Total
Net Income/(expenditure)
Transfers between funds
18
Other recognised gains/(losses)
Gains/(losses) on revaluation of fixed assets and investment property
Net movement in funds
RECONCILIATION OF FUNDS
Total funds brought forward
18
Total funds carried forward
18		 Unrestricted
Funds
£
3,617,143
733,410
137,896
162
146
-
4,488,757
8,523
2,685,933
2,694,456
1,794,301
(493,913)
1,300,388
-
1,300,388
6,371,650
7,672,038		 Restricted
Funds
£
2,370,222
-
-
-
-
-
2,370,222
-
2,992,065
2,992,065
(621,843)
493,913
(127,930)
-
(127,930)
1,464,318
1,336,388		 2020
Total
Funds
£
5,987,365
733,410
137,896
162
146
-
6,858,979
8,523
5,677,998
5,686,521
1,172,458
-
1,172,458
-
1,172,458
7,835,968
9,008,426		 2019
Total
Funds
£
4,746,718
-
140,776
966
79
3,998,516
8,887,055
8,549
10,766,578
10,775,127
(1,888,072)
-
(1,888,072)
-
(1,888,072)
9,724,040
7,835,968

The charity has no recognised gains or losses other than those dealt with in the statement of financial activities. All of the above results are derived from continuing activities.

Page 9

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

CHRIST EMBASSY

BALANCE SHEET AS AT 31 DECEMBER 2020

Note
FIXED ASSETS
Tangible assets
11
Investment property
12
CURRENT ASSETS
Assets held for sale
13
Debtors
14
Cash at hand and in bank
Total current assets
CURRENT LIABILITIES
Creditors: amounts falling due within one year
15
Net current assets/(liabilities)
Total assets less current liabilities
Creditors: amounts falling due after more than one year
16
Net assets/(liabilities)
THE FUNDS OF THE CHARITY
Restricted funds
18
Unrestricted funds
18
Total charity funds		 £
£
8,301,740
2,500,000
10,801,740
733,410
7,538
847,485
1,588,433
1,759,914
(171,481)
10,630,259
(1,621,833)
9,008,426
1,336,388
7,672,038
9,008,426
2020		 £
£
8,500,535
2,500,000
11,000,535
-
14,476
610,856
625,332
2,175,796
(1,550,464)
9,450,071
(1,614,103)
7,835,968
1,464,318
6,371,650
7,835,968
2019

The financial statements on pages 9 to 21 were approved and authorised for issue by the trustees on 25 July 2022 and signed on their behalf by:

………………………………………….

Trustee

Page 10

CHRIST EMBASSY

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

STATEMENT OF CASH FLOWS

----- Start of picture text -----
2020 2019
Note £ £ £ £
Net cash flow from operating activities (see below) 1,024,609 (5,525,132)
Cash flow from investing activities
Interest received 162 966
Proceeds from sale of fixed assets - 6,112,161
Transfer to assets held for sale (733,410) -
Purchase of fixed assets (8,354) (19,988)
Net cash flow from investing activities (741,602) 6,093,139
Cash flows from financing activiites
Repayment of borrowings (46,378) (541,025)
(46,378) (541,025)
Net increase/(decrease) in cash and cash equivalents 236,629 26,982
Cash and cash equivalents at 31 December 2019 610,856 583,874
Cash and cash equivalents at 31 December 2020 847,485 610,856
Cash and cash equivalents consist of:
Cash at bank and in hand 847,485 610,856
Cash and cash equivalents at 31 December 2020 847,485 610,856
Reconciliation of net income to net cash flow from operating activities
2020 2019
£ £ £ £
Net income for the year 1,172,458 (1,888,072)
Adjusted for:
Interest and dividends (162) (966)
Depreciation and impairment of tangible fixed assets 207,149 220,705
-
Profit on disposal of fixed assets (3,998,516)
Decrease/(increase) in debtors 6,938 10,445
Increase/(decrease) in creditors (361,774) 131,272
(147,849) (3,637,060)
1,024,609 (5,525,132)
----- End of picture text -----

Page 11

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

CHRIST EMBASSY

ACCOUNTING POLICIES

General information, scope and basis of the financial statements

Christ Embassy is an unincorporated charity, registered in England, and established under a Trust Deed. The address of the principal office is given in the reference and administrative details section and the nature of the charity’s operations and principal activities are given in the trustees' report.

The charity constitutes a public benefit entity as defined by FRS 102. The financial statements have been prepared in accordance with 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 issued in October 2019, the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102), the Charities Act 2011, the Companies Act 2006 and UK Generally Accepted Accounting Practice.

The financial statements are prepared on a going concern basis under the historical cost convention, modified to include certain items at fair value. The financial statements are presented in sterling which is the functional currency of the charity and rounded to the nearest £.

The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated.

Incoming resources

All incoming resources are included in the Statement of Financial Activities (SoFA) when the charity is legally entitled to the income after any performance conditions have been met, the amount can be measured reliably and it is probable that the income will be received.

For donations to be recognised the charity will have been notified of the amounts and the settlement date in writing. If there are conditions attached to the donation and this requires a level of performance before entitlement can be obtained then income is deferred until those conditions are fully met or the fulfilment of those conditions is within the control of the charity and it is probable that they will be fulfilled.

For legacies, entitlement is the earlier of the charity being notified of an impending distribution or the legacy being received. At this point income is recognised. On occasion legacies will be notified to the charity however it is not possible to measure the amount expected to be distributed. On these occasions, the legacy is treated as a contingent asset and disclosed.

Income from trading activities includes income earned from fundraising events and trading activities to raise funds for the charity. Income is received in exchange for supplying goods and services in order to raise funds and is recognised when entitlement has occurred.

Income from grants are recognised at fair value when the charity has entitlement after any performance conditions have been met, it is probable that the income will be received and the amount can be measured reliably. If entitlement is not met then these amounts are deferred.

Investment income is earned through holding assets for investment purposes such as shares and property. It includes dividends, interest and rent. Where it is not practicable to identify investment management costs incurred within a scheme with reasonable accuracy the investment income is reported net of these costs. It is included when the amount can be measured reliably. Interest income is recognised using the effective interest method and dividend and rent income is recognised as the charity’s right to receive payment is established.

Resources expended

All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. Expenditure is recognised where there is a legal or constructive obligation to make payments to third parties, it is probable that the settlement will be required and the amount of the obligation can be measured reliably. It is categorised under the following headings:

Grants payable to third parties are within the charitable objectives. Where unconditional grants are offered, this is accrued as soon as the recipient is notified of the grant, as this gives rise to a reasonable expectation that the recipient will receive the grants. Where grants are conditional relating to performance then the grant is only accrued when any unfulfilled conditions are outside of the control of the charity.

Support costs allocation

Support costs are those that assist the work of the charity but do not directly represent charitable activities and include office costs, governance costs, administrative payroll costs. They are incurred directly in support of expenditure on the objects of the charity and include project management carried out at headquarters. Where support costs cannot be directly attributed to particular headings they have been allocated to cost of raising funds and expenditure on charitable activities on a basis consistent with use of the resources.

Page 12

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

CHRIST EMBASSY

ACCOUNTING POLICIES

Fixed assets

Tangible fixed assets are stated at cost or valuation less accumulated depreciation and accumulated impairment losses. Cost includes costs directly attributable to making the asset capable of operating as intended.

----- Start of picture text -----
|||||||||||||||||||||||||| |---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---| |Depreciation|is|provided|on|all|tangible|fixed|assets,|at|rates|calculated|to|write|off|the|cost,|less|estimated|residual|value,|of|each|asset|on|a| |systematic basis over its expected useful life as follows:| |Freehold property|2% straight line| |Leasehold improvements|2% straight line| |Office equipment|33.3% straight line| |Computer equipment|20% straight line| |Motor vehicles|25% straight line|

----- End of picture text -----

At each balance sheet date the charity's management and trustees consider whether there is any indications the assets are impaired. Where indications of impairment exist the assets is written down to its recoverable amount.

Fixed asset investments

Investments are recognised initially at fair value which is normally the transaction price excluding transaction costs. Subsequently, they are measured at fair value with changes recognised in ‘net gains / (losses) on investments’ in the SoFA if the shares are publicly traded or their fair value can otherwise be measured reliably.

Stock

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing stock to its present location and condition.

Debtors receivable and creditors payable within one year

Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in expenditure.

Assets held for sale

Assets held for sale comprise assets available for immediate sale, which are being actively marketed at a market rate. These assets are reported at net residual value less costs to sell.

Cash and cash equivalents

Cash and cash equivalents includes cash at bank and in hand and cash balances within the investment portfolio available for investment transaction purposes.

Employee benefits

When employees have rendered service to the charity, short-term employee benefits to which the employees are entitled are recognised at the undiscounted amount expected to be paid in exchange for that service.

The charity operates a defined contribution plan for the benefit of its employees. Contributions are expensed as they become payable and allocated to funds on a basis in line with the allocation of expenditure.

Redundancy and termination payments are recorded as an expense in the financial statements as they fall due with any amounts unpaid at the balance sheet date accrued.

VAT

The Charity is not registered for VAT and cannot recover VAT incurred on costs. These are therefore stated inclusive of any VAT element.

Tax

The charity is considered to pass the tests set out in sections 521 to 536 Income Tax Act 2007 (ITA 2007), as such no income tax is payable on the charity's activities.

Page 13

CHRIST EMBASSY FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

ACCOUNTING POLICIES

Fund accounting

Unrestricted funds are available for use at the discretion of the trustees in furtherance of the general objectives of the charity and which have not been designated for other purposes.

Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the charity for particular purposes. The cost of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.

Going concern

The financial statements have been prepared on a going concern basis as the trustees believe that no material uncertainties exist. The trustees have considered the level of funds held and the expected level of income and expenditure for 12 months from authorising these financial statements. The budgeted income and expenditure is sufficient with the level of reserves for the charity to be able to continue as a going concern and can be supplemented through the sale of vacant buildings.

Page 14

CHRIST EMBASSY

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

NOTES TO THE FINANCIAL STATEMENTS

----- Start of picture text -----
1. Donations and legacies
2020 2019
Unrestricted Restricted Total Unrestricted Restricted Total
Funds Funds Funds Funds Funds Funds
£ £ £ £ £ £
Tithes and offerings 3,617,143 2,370,222 5,987,365 3,155,394 1,591,324 4,746,718
3,617,143 2,370,222 5,987,365 3,155,394 1,591,324 4,746,718
2. Other trading activities
2020 2019
Unrestricted Restricted Total Unrestricted Restricted Total
Funds Funds Funds Funds Funds Funds
£ £ £ £ £ £
Rental income 137,896 - 137,896 140,776 - 140,776
137,896 - 137,896 140,776 - 140,776
3. Investments
2020 2019
Unrestricted Restricted Total Unrestricted Restricted Total
Funds Funds Funds Funds Funds Funds
£ £ £ £ £ £
Bank interest 162 - 162 966 - 966
162 - 162 966 - 966
4. Charitable activities
2020 2019
Unrestricted Restricted Total Unrestricted Restricted Total
Funds Funds Funds Funds Funds Funds
£ £ £ £ £ £
Ministry bookshop 146 - 146 79 - 79
146 - 146 79 - 79
5. Raising funds
2020 2019
Unrestricted Restricted Total Unrestricted Restricted Total
Funds Funds Funds Funds Funds Funds
£ £ £ £ £ £
Voluntary income staff costs - security 8,523 - 8,523 8,549 - 8,549
8,523 - 8,523 8,549 - 8,549
----- End of picture text -----

Page 15

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

CHRIST EMBASSY

NOTES TO THE FINANCIAL STATEMENTS

6. Charitable activities

Grants to institutions (see note 6a.)
Grants to individuals
Missionary work
Rent and rates
Event costs
Television and internet broadcasts
Advertising
Motor and travel expenses
Repairs and maintenance
Wages and salaries
Books, music and audio
Depreciation
Impairment of asset held for sale
Support and governance costs (note 7)		 Unrestricted
Funds
£
2,297
-
554,964
122,052
274,841
10,979
58,962
26,233
1,107,895
3,333
207,149
-
317,228
2,685,933		 Restricted
Funds
£
505,000
1,841,854
-
-
22,163
493,033
-
130,015
-
-
-
-
-
-
2,992,065		 2020
Total
Funds
£
505,000
1,844,151
-
554,964
144,215
767,874
10,979
188,977
26,233
1,107,895
3,333
207,149
-
317,228
5,677,998		 Unrestricted
Funds
£
-
8,792
-
884,831
741,640
585,386
9,117
97,712
20,165
1,014,303
1,100,111
220,704
-
503,193
5,185,954		 Restricted
Funds
£
265,086
869,157
5,291
-
11,084
406,771
23,614
406,830
-
-
3,592,791
-
-
-
5,580,624		 2019
Total
Funds
£
265,086
877,949
5,291
884,831
752,724
992,157
32,731
504,542
20,165
1,014,303
4,692,902
220,704
-
503,193
10,766,578

6a. Grants to institutions

Healing School - Canada
Trauma Care International		 2020
£
500,000
5,000
505,000		 2019
£
250,086
15,000
265,086

7. Support and governance costs

Light and heat
Printing postage and stationery
Telephone and internet
Sundry expenses
Insurance
Bank interest payable
Bank charges
Legal and professional fees
Accountancy fees
Auditors remuneration
Loss/(profit) on disposal of fixed assets		 Unrestricted
Funds
£
33,067
50,346
28,365
82,759
11,786
79,201
8,910
8,844
150
13,800
-
317,228		 Restricted
Funds
£
-
-
-
-
-
-
-
-
-
-
-
-		 2020
Total
Funds
£
33,067
50,346
28,365
82,759
11,786
79,201
8,910
8,844
150
13,800
-
317,228		 Unrestricted
Funds
£
82,880
31,006
35,300
139,657
32,430
100,888
18,307
43,110
5,215
14,400
-
503,193		 Restricted
Funds
£
-
-
-
-
-
-
-
-
-
-
-
-		 2019
Total
Funds
£
82,880
31,006
35,300
139,657
32,430
100,888
18,307
43,110
5,215
14,400
-
503,193

Page 16

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

CHRIST EMBASSY

NOTES TO THE FINANCIAL STATEMENTS

8. Auditors remuneration

8. Auditors remuneration
Unrestricted
Restricted
Funds
Funds
£
£
Auditors remuneration - audit
10,200
-
Auditors remuneration - accountancy
3,600
-		 2020
Total
Unrestricted
Funds
Funds
£
£
10,200
11,400
3,600
3,000		 Restricted
Funds
£
-
-		 2019
Total
Funds
£
11,400
3,000
9. Wages and salary cost
Gross wages
Employer's national insurance costs
Employer's pension contributions		 2020
Total
Funds
£
963,892
94,524
37,622		 2019
Total
Funds
£
891,904
88,284
29,542
1,096,038 1,009,730
Staff numbers:
Average head count		 2020
33		 2019
30
£60,001 - £70,000
The number of employees who received total employee benefits (excluding		 employer pension costs of more than 2020
2
£60,000 is as follows:		 2019
2

The charity operated a defined contribution pension scheme for its employees. The contributions shown above are recorded as an expense within the Statement of Financial Activities with no amounts outstanding at the balance sheet date.

10. Related party transactions

The following trustees were remunerated for their full time roles as Pastors, being a minority of the total number of trustees and thus allowed under the Trust Deed. The amounts payable during the for the period in which they were trustees was as follows:

Pastor Gabriel Adesina
Gross pay
Employer's NIC
Employer's pension		 2020
£
58,020
6,800
2,189
67,009		 2019
£
55,000
6,406
2,878
64,284

Inclusive of Pastor Adesina the charity's three paid members of key management personnel received employee benefits totalling £155,139, (2019: three, £123,784).

None of the trustees, listed on page 1, were reimbursed or had expenses paid on their behalf during the year under review or the comparative year.

Page 17

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

CHRIST EMBASSY

NOTES TO THE FINANCIAL STATEMENTS

11. Tangible fixed assets - charity

Cost
At 1 January 2019
Additions
Disposals
At 31 December 2019
Depreciation
Accumulated at 1 January 2019
Charge for the year
On disposals
At 31 December 2019
Net book value at 31 December 2020
Net book value at 31 December 2019		 Freehold
property
£
9,528,840
-
-
9,528,840
1,574,234
190,577
-
1,764,811
7,764,029
7,954,606		 Leasehold
improvements
£
658,618
-
-
658,618
118,522
14,279
-
132,801
525,817
540,096		 Office
equipment
£
751,397
8,354
-
759,751
746,876
1,612
-
748,488
11,263
4,521		 Church
equipment
£
2,645,228
-
-
2,645,228
2,643,916
681
-
2,644,597
631
1,312		 Motor
vehicles
£
15,145
-
-
15,145
15,145
-
-
15,145
-
-		 Total
£
13,599,228
8,354
-
13,607,582
5,098,693
207,149
-
5,305,842
8,301,740
8,500,535

12. Investment property

Carrying (market) value brought forward
Transfers to assets held for sale
Revaluation adjustments
Carrying (market) value carried forward		 2020
Total
Funds
£
2,500,000
-
-
2,500,000		 2019
Total
Funds
£
2,500,000
-
-
2,500,000

The property was valued in 2017 by Glenny LLP, Chartered Surveyors, on an open market value for existing use basis.

13. Assets held for sale

Building (received from subsidiary)
14. Debtors
Prepayments and accrued income		 2020
Total
Funds
£
733,410
733,410
2020
Total
Funds
£
7,538
7,538		 2019
Total
Funds
£
-
-
2019
Total
Funds
£
14,476
14,476

Page 18

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

CHRIST EMBASSY

NOTES TO THE FINANCIAL STATEMENTS

15. Creditors: amounts falling due within one year

Bank loans and overdrafts
Other loans
Trade creditors
Other creditors
Accruals and deferred income		 2020
Total
Funds
£
70,318
232,203
381,506
1,047,687
28,200
1,759,914		 2019
Total
Funds
£
124,425
232,203
782,012
1,022,756
14,400
2,175,796

16. Creditors: due after more than one year

Bank loans payable between one and two years
Bank loans payable between two and five years
Bank loans payable in more than five years		 2020
Total
Funds
£
84,197
270,743
1,266,893
1,621,833		 2019
Total
Funds
£
129,515
457,872
1,026,716
1,614,103

17. Analysis of net assets between funds

Tangible fixed assets
Investment property
Current assets
Current liabilities
Non-current liabilities		 Unrestricted
Funds
£
8,301,740
2,500,000
252,045
(1,759,914)
(1,621,833)
7,672,038		 Restricted
Funds
£
-
-
1,336,388
-
-
1,336,388		 2020
Total
Funds
£
8,301,740
2,500,000
1,588,433
(1,759,914)
(1,621,833)
9,008,426		 Unrestricted
Funds
£
8,500,535
2,500,000
(838,986)
(2,175,796)
(1,614,103)
6,371,650		 Restricted
Funds
£
-
-
1,464,318
-
-
1,464,318		 2019
Total
Funds
£
8,500,535
2,500,000
625,332
(2,175,796)
(1,614,103)
7,835,968

18. Analysis of net movement in funds

Restricted funds
Partnership
Ministry
Pastoral
Building
Total restricted funds
Unrestricted funds
Designated funds
Fixed asset reserve
Revaluation reserve
Total designated funds
General fund
Total charity unrestricted funds
Total funds		 Total funds
brought
forward
£
-
711,871
52,593
699,854
1,464,318
8,500,535
1,075,000
9,575,535
(3,203,885)
6,371,650
7,835,968		 Total
incoming
resources
£
2,265,131
104,466
-
625
2,370,222
-
-
-
4,488,757
4,488,757
6,858,979		 Total
Transfers
resources
between
expended
funds
£
£
(2,759,044)
493,913
(233,021)
-
-
-
-
-
(2,992,065)
493,913
(207,149)
8,354
-
-
(207,149)
8,354
(2,487,307)
(502,267)
(2,694,456)
(493,913)
(5,686,521)
-
Year ended 31 December 2020		 Gains/(losses)
on fixed assets
& investments
£
-
-
-
-
-
-
-
-
-
-
-		 Total funds
carried
forward
£
-
583,316
52,593
700,479
1,336,388
8,301,740
1,075,000
9,376,740
(1,704,702)
7,672,038
9,008,426

Page 19

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

CHRIST EMBASSY

NOTES TO THE FINANCIAL STATEMENTS

18. Analysis of net movement in funds

Restricted funds
Partnership
Ministry
Pastoral
Building
Total restricted funds
Unrestricted funds
Designated funds
Fixed asset reserve
Revaluation reserve
Total designated funds
General fund
Total charity unrestricted funds
Total funds		 Total funds
brought
forward
£
1,896,198
348,181
52,593
690,446
2,987,418
10,814,897
1,075,000
11,889,897
(5,153,275)
6,736,622
9,724,040		 Total
incoming
resources
£
1,218,226
363,690
-
9,408
1,591,324
19,988
-
19,988
7,275,743
7,295,731
8,887,055		 Total
Transfers
resources
between
expended
funds
£
£
(5,580,624)
2,466,200
-
-
-
-
-
-
(5,580,624)
2,466,200
(220,705)
(2,113,645)
-
-
(220,705)
(2,113,645)
(4,973,798)
(352,555)
(5,194,503)
(2,466,200)
(10,775,127)
-
Year ended 31 December 2019		 Gains/(losses)
on fixed assets
& investments
£
-
-
-
-
-
-
-
-
-
-
-		 Total funds
carried
forward
£
-
711,871
52,593
699,854
1,464,318
8,500,535
1,075,000
9,575,535
(3,203,885)
6,371,650
7,835,968

19. Description of restricted funds

Partnership Funds for other arms of the Ministry; namely Rhapsody of Realities, Healing School, Loveworld Television, Innercity Mission, Cyber Ministry and International School of Ministry.

Ministry Funds to support missionary projects.

Pastoral Funds to assist a small group of fellowship within the ministry congregation Building Funds for the acquisition of a bigger venue or expansion of existing venues to accommodate the fast growing membership of the Church.

20. Christ Embassy Limited

Turnover
Cost of Sales
Gross profit
Administrative expenses
Operating profit(loss)
Interest receivable and similar income
Interest payable and similar expenses
Net profit/(loss) before gift aid and taxation
Corporation tax
Transfer of assets to parent charity
Net profit/(loss) after gift aid
Reserves brought forward
Reserves carried forward
Total capital and reserves		 2020
Total
Funds
£
-
-
-
-
-
-
-
-
-
(733,410)
(733,410)
733,410
-
-		 2019
Total
Funds
£
-
-
-
-
-
-
-
-
-
-
733,410
733,410
733,410

Page 20

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

CHRIST EMBASSY

NOTES TO THE FINANCIAL STATEMENTS

21. Contingent asset

At the balance sheet date gift aid recoverable on donations received amounted to £240,000.

22. Financial instruments

The carrying amounts of the charity's financial instruments are as follows:

Financial liabilities
Measured at amortised cost:
Trade creditors (note 15)
Bank loan (notes 15 and 16)
Other loans (note 15)
Other creditors (note 15)		 2020
2019
Total
Total
Funds
Funds
£
£
381,506
782,012
1,692,151
1,738,528
232,203
232,203
1,047,687
1,022,756
3,353,547
3,775,499
Charity

23. Comparative charity statement of financial activities

Note
INCOME AND ENDOWMENTS FROM:
Donations and legacies
1
Subsidiary assets released
Other trading activities
2
Investments
3
Charitable activities
4
Other - profit on sale of assets
Total
EXPENDITURE ON:
Raising funds
5
Charitable activities
6
Total
Net Income/(expenditure)
Transfers between funds
18
Other recognised gains/(losses)
Gains/(losses) on revaluation of fixed assets and investment property
Net movement in funds
RECONCILIATION OF FUNDS
Total funds brought forward
18
Total funds carried forward
18		 Unrestricted
Funds
£
3,155,394
-
140,776
966
79
3,998,516
7,295,731
8,549
5,185,954
5,194,503
2,101,228
(2,466,200)
(364,972)
-
(364,972)
6,736,622
6,371,650		 Restricted
Funds
£
1,591,324
-
-
-
-
-
1,591,324
-
5,580,624
5,580,624
(3,989,300)
2,466,200
(1,523,100)
-
(1,523,100)
2,987,418
1,464,318		 2019
Total
Funds
£
4,746,718
-
140,776
966
79
3,998,516
8,887,055
8,549
10,766,578
10,775,127
(1,888,072)
-
(1,888,072)
-
(1,888,072)
9,724,040
7,835,968

Page 21