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2021-12-31-accounts

Charity Registration No. 1059464

Company Registration No. 3277668 (England and Wales)

EUROPEAN CHRISTIAN MISSION (BRITAIN) ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

EUROPEAN CHRISTIAN MISSION (BRITAIN)

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees Mike McMaster (Chair)
Joanne Appleton
Tim Herbert
Richard Lawson
Esther Ross
Simone Lockyer
Stephen Thompson
Secretary Richard Lindley
Charity number 1059464
Company number 3277668
Registered office Unit F34/35
Moulton Park Business Centre
Redhouse Road
Northampton
NN3 6AQ
Auditor Jacob Cavenagh & Skeet
5 Robin Hood Lane
Sutton
Surrey
SM1 2SW
Bankers Lloyds Bank plc
George Row
Northampton
NN1 2HG
Solicitors Anthony Collins Solicitors
134 Edmund Street
Birmingham
B3 2ES

EUROPEAN CHRISTIAN MISSION (BRITAIN)

CONTENTS

Page
Trustees' report 1 - 5
Statement of trustees' responsibilities 6
Independent auditor's report 7 - 9
Statement of financial activities 10
Balance sheet 11
Statement of cash flows 12
Notes to the financial statements 13 - 24

EUROPEAN CHRISTIAN MISSION (BRITAIN)

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 DECEMBER 2021

The trustees present their annual report and financial statements for the year ended 31 December 2021.

The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity's Memorandum & Articles of Association , the Companies Act 2006 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)".

Structure, governance and management

The charity is a company limited by guarante e, company no. 3277668, registered with the Charity Commission, charity no. 1059464, and is governed by the provisions contained within the Memorandum and Articles of Association.

The trustees, who are also the directors for the purpose of company law, and who served during the year and up to the date of signature of the financial statements were:

Mike McMaster (Chair) Joanne Appleton Tim Herbert Richard Lawson Esther Ross Simone Lockyer Stephen Thompson Simon Loveless (Retired 22 April 2021)

All Trustees are members of the charitable company and stand as guarantors of the charitable company in the sum of £1 each.

There can be up to twelve Trustees. Once appointed, Trustees serve for a period of four years. At least two Trustees are appointed by the existing board and at least two by the members of the mission at annual general meetings.

All Trustees’ decisions are taken at their quarterly meetings. This is supplemented by Finance Committee and strategic meetings.

Appropriate Trustee induction training is provided for all new Trustees.

The Trustees delegate the day-to-day management of the organisation to the British Director.

Our People

At the end of 2021, ECM (Britain) had 34 missionaries, 10 Associates, 2 short-term and 2 accepted candidates, and a number of new candidate leads are being followed up. In addition there were eight salaried staff (seven of whom are part-time) and three volunteers.

Missionary recruitment remains an ongoing strategic priority, although the funding of new and existing missionaries remains a challenge, given the high cost of living in most European countries and the changes to the exchange rate. The effect that Brexit has had both on recruitment and those missionaries already living in mainland Europe continues to be monitored.

Remuneration of all UK staff is set with regards to market rates and the relevant experience of the staff member and reviewed on an annual basis to ensure that pay levels are fair.

EUROPEAN CHRISTIAN MISSION (BRITAIN)

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

Affiliation

ECM (Britain) works in close partnership with ECM (International) and the terms of our relationship are set out in a covenant agreement.

The Board of Trustees of ECM (International) is responsible for ECM’s shared doctrinal and spiritual principles and the general direction and development of ministries in Europe. The Trustees of ECM (Britain) are responsible for promotional work in Britain, the recruitment and member care of personnel and the raising of resources to carry out European ministry.

Objectives and activities

The charity's object is the advancement of the Christian faith in Europe and elsewhere by means of:

Our Primary Mission

The mission of ECM (Britain) is to equip, connect and multiply followers of Jesus through discipleship and church planting so we see a Europe that is full of churches, that are full of people, that are full of Jesus!

Our unique contribution to this movement of God’s Spirit is to:

Public benefit

The Trustees are aware of the Charity Commission’s guidance on public benefit and, in particular, the specific guidance offered to charities with these objects. As explained below, the charity has addressed a range of such public benefit and the Trustees confirm that the charity’s activities fall within these objects.

Under the Public Benefit guidelines, for religion to be charitable, it must be ‘advanced’, i.e. promoted or extended. As our charitable objects include the evangelisation of the peoples of Europe, and the establishing and strengthening of evangelical churches across Europe, we thereby meet this requirement.

The identifiable benefits include the transformation of lives through the gospel of Jesus Christ, and the fellowship, friendships and relationships created or restored through participation in the life of a local church. These benefits are available to members of the public from all levels of social life across Europe, as we work in communities ranging from the affluent through to the most economically and socially marginalised, such as immigrants and refugees.

Fundraising policy

ECM (Britain) managed most of the communications and fundraising information internally and only used a commercial participator to fill skills gaps or capacity shortfalls, such as an agency to print the magazine or send a mailing. ECM (Britain) raised the majority of its funds from supporters with a long term association with the charity. No complaints about fundraising strategy were received during the period.

Grant-making policy

G rants are made within the ECM network, primarily for approved field projects or similar (e.g. the Good Samaritan Association in Spain) and occasionally to other ECM sending sections to assist their development. Grants are also o ccasionally given to external partners. Grants may be one-off, multiyear (often on a reducing basis), or open-ended. In most cases, such grants are funded from legacy income or from funds raised specifically for that purpose from donors.

EUROPEAN CHRISTIAN MISSION (BRITAIN)

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

Investment policy

ECM (Britain) will maintain its legal responsibility to optimise the return on investments. A balance between risk and return will be sought appropriate to the amount of funds available. High risk will not be acceptable but some degree of risk must be accepted to gain a good return. Agreement regarding the type of investment vehicle used will be made by the Trustees at the appropriate juncture.

Achievements and performance

ECM (Britain) exists to see the peoples of Europe transformed in the name of Jesus Christ. That is carried out through Christian missionary work in Europe, primarily in support of church-planting and discipleship. During 2021 our central areas of emphasis were in the areas of recruitment and training of new missionaries, care for existing workers, engaging collaboratively with like-minded organisations, support for other parts of ECM, and ongoing promotional and fundraising work.

Mission Strategy

Our mission strategy continued to be achieved through the areas of church-planting, discipleship, leadership development and social care. Efforts to support these ministries in Europe, both through ECM workers and through national church partners, were carried forward through fundraising, recruitment, training and in other practical ways.

Sending Missionaries and Supporting National Workers

Equipping, enabling and supporting dedicated individuals and couples so that they can use their God-given gifts and skills in effective ministry across Europe remains our primary function. As these people may be working in their own nation or be serving cross-culturally, the services we provide are uniquely tailored to their specific location and needs, but can include mentoring, calling discernment, bespoke training support, member care, financial services and more. During 2021 ECM (Britain) had over 40 missionaries or partners serving in Portugal, Spain, France, England, Austria, Germany, Belgium, Netherlands, Croatia, Bosnia, Serbia, Kosovo, Romania, Slovenia and Albania.

Our Investment in the ECM Network

During 2021, ECM (Britain) provided financial and/or consultancy support to ECM sections or related work and individuals in nations including Croatia, Belgium, Ireland, Spain, Albania, Kosovo, Romania, France, Serbia as well as ECM International, in accordance with our grant-making policy to build the capacity of the whole network.

Our Passion for Partnership

Partnership is both an important value and an important strategy for ECM (Britain) and we want to thank all who have partnered with us in 2021.

We value the importance of working with others because the Bible emphasises the importance of unity within Christ’s body, the Church. Healthy partnerships are an expression of that unity.

We value the strategic importance of collaborative relationships that help grow the kingdom of God because the needs and opportunities in Europe are simply too large for us to respond to alone.

Some of our ongoing partnerships included:

  1. Many churches within the UK, for whom we act as their sending and supporting partner so that their members can serve in Europe;

  2. Charitable Trusts and individual donors who want to partner with us in funding missionaries or specific projects which align with their objectives;

  3. ECM (International) — the umbrella organisation coordinating the collaborative efforts of individual independent ECM organisations around the world — for whom we have provided leadership of strategic groups, support of key functions, input into policy decisions and income;

  4. 3 -

EUROPEAN CHRISTIAN MISSION (BRITAIN)

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

  1. How Will They Hear, a collaboration of Christian organisations seeking to highlight the needs and opportunities amongst migrants and refugees in Europe;

  2. Trans World Radio Europe, a mission organisation with offices on the continent for whom we have agreed to handle applicants from within the UK.

Financial review

The trustees are mindful that the income for the charity continues to rely on generous legacy donations to achieve stability, with the income from regular donations falling in 2021. Detailed accounts are to be found in the Statement of Financial Activities and Balance Sheet. There was an overall surplus of £44,060 for the year (2020: 11,093). After transfers, there was a surplus in unrestricted funds of £9,396 (2020: £27,296), a deficit in designated funds of £1,001 (2020: surplus £0) and a surplus in restricted funds of £35,665 (2020: deficit of £16,203). The deficit before transfers in unrestricted funds was £72,765 (2020: deficit £52,590). Legacy income was below forecast at £47,393 (2020: £65,390). The transfer of £82,161 (2020: £79,886) from restricted to unrestricted funds reflects an allocation of our costs, in line with our accounting policies.

The designated fund balance of £316,022 (2020: £317,023) reflects the building designated fund and other unallocated funds. The unstable Euro/Sterling exchange rate has created issues during 2021. Restricted income £722,099 (2020: £744,365) has decreased and expenditure for the support of missionaries has decreased to £604,273 (2020: £680,682).

Reserves policy

The Trustees aim to hold unrestricted reserves (that is, those funds not tied up in fixed assets, designated or restricted funds, less pension liability) equal to approximately three month’s normal expenditure (£70,000), to cover fluctuations in donation income.

The Trustees also aim to hold 3 months balances in certain restricted funds, i.e. those for our overseas staff, to cover fluctuations in donation income to these funds. The trustees have also determined that the proceeds from the sale of the owned property asset would continue to be retained as designated funds for reinvestment in alternative premises.

At the year end, the charity had total funds of £1,064,182 of which £525,428 were restricted, £316,022 were designated and £222,732 were unrestricted.

Our Primary Risks

The Trustees regularly identify and review major risks to which the charity might be exposed and have established systems to mitigate the risks. Financial sustainability is the major financial risk facing the charity and this is being managed by the UK Director through continued promotion, fundraising and increasing the charity ’s presence on social media. We praise God that ECM (Britain)’s financial situation remains strong despite the many challenges thrown up by the COVID-19 pandemic.

Our Future Plans

The COVID-19 pandemic has underlined the need for charities to be flexible and resilient in today’s everchanging world. ECM (Britain) is now engaged in a long-term strategic planning process which is reviewing our best unique contribution to ministry in Europe at this moment in history.

While it is too early to predict the outcomes of this process, we will continue to focus on equipping, connecting and mobilising in ways such as those shown below:

EQUIP

EUROPEAN CHRISTIAN MISSION (BRITAIN) TRUSTEES. REPORT (INCLUDING DIRECTORS, REPORTI ICONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021 CONNECT We build networks so that God a resources in one pla￿ can extend his kingdom in another. We encourage people to work in teams so their ministries have greater impact. We actively work together and form partnerships as a way of showing the unity of Christ g church. MULTIPLY We mobilise and inspire people for God è mSssion in Europe. We challenge people lo become disciples of Jesus who themselves make more discipFes. We make possible the planting of healthy churches that reproduce naturally. As an organisation we will continue to achieve thls by staytng.- SUSTAINABLE= ECM {Britainl can only help change Europe long-term if we are still here. Therefore any new sifalegy wll tske into account our assets and our limits at the same time as seeking lo apply courageous faith in face of the spiritual needs of Europe. FLEXIBLE.. There is no way of knowing what tomorrow may bring. Therefore we must always 5￿k strategies that allow for timely ¢hange based on the new challenges and opportunities before u5. SIBLE.- Unless people and churthes are kept aware of ECM IBrilain) and our unique contribution to European ministry then we are bound lo lose supporters. Appropriate new and ongoing media and means will need lo be used to keep ourselves appropriately known to the CO￿eCt constituencies. RELATIONAL.. ECM (Brilainl has always ftscused on relationships. We want people lo h3ve 8 relationship with Jesus. We support workers in Europe through relational means. We encourage a relational ne￿ork of churches and individuals to provide the prayer and financial support required to do European ministry. Examples of this in ministry indude." encouraging relationships built on Christ-like love and respect (even when they have to be delivered rtually due lo COVID-191 promoting fair (realmenl of migrants. asylum seekers and refugees educab.ng and rehabilitating those affected by Substan￿ abuse uèaling spaces for peoplè from different backgrounds lo come together offerin9 prayer guidance and information about ditricull situations a¢ross Europe Disclosure of information to audltor Each of the trustees has confirmed that there is no information of which they are 8W8re which is relevant to the audit. but of which the auditor is unaware. They have further Confimed that they have t8ken appropriate steps lo idenlfy such relevant infomation and to establish that the auditor is aware of such information. The t￿SleeS. pproved by the Board of Tru￿eeS. Richard Lindley Company Secretary Dated.. 16 June 2022

EUROPEAN CHRISTIAN MISSION (BRITAIN)

STATEMENT OF TRUSTEES' RESPONSIBILITIES

FOR THE YEAR ENDED 31 DECEMBER 2021

The trustees, who are also the directors of European Christian Mission (Britain) for the purpose of company law, 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).

Company Law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that year.

In preparing these financial statements, the trustees are required to:

The trustees are responsible for keeping adequate 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 Companies Act 2006. 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.

EUROPEAN CHRISTIAN MISSION (BRITAIN)

INDEPENDENT AUDITOR'S REPORT

TO THE TRUSTEES OF EUROPEAN CHRISTIAN MISSION (BRITAIN)

Opinion

We have audited the financial statements of European Christian Mission (Britain) (the ‘charity’) for the year ended 31 December 2021 which comprise the statement of financial activities, the balance sheet, the 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's 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 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.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

EUROPEAN CHRISTIAN MISSION (BRITAIN)

INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF EUROPEAN CHRISTIAN MISSION (BRITAIN)

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the charity and its environment obtained in the course of the audit, we have not identified material misstatements in the d irectors ' r eport included within the trustees' r eport.

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the trustees' report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the s tatement of trustees' r esponsibilities, the trustees, who are also the directors of the charity for the purpose of company law, 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. 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 charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

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.

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below .

Based on our understanding of the company, we identified that the principal risks of non-compliance with laws and regulations related to employment and financial reporting legislation and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006 and Charities Act 2011.

We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by making enquiries of management, considering the internal controls in place and discussion amongst the engagement team. We determined that the principal risks were related to payments to third parties, management bias in accounting estimates and management override of controls.

EUROPEAN CHRISTIAN MISSION (BRITAIN) INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF EUROPEAN CHRISTIAN MISSION (BRITAIN) In response to the risks identified we designed procedures which included, bul were not limited lo.. verifying payments to third partios on a sample basis challenging significant accounting estimates such as pension provision identifying and lestit)g journal entries reviewing Trustees and Finance meeting minutes evaluating the charity's intem81 controls There are inherent limitations in the audit procedures described above. The more removed that laws and regulations are from financial transactions. the less likeFy il is that we WOLtld become aware of nowiThpliance. Material misslalements that arise due lo fraud can be harder lo delecl than those that arise from error as they may involve deliberate concealment or collusion. A further description of our responsibilities is available on the Financial Reporting Council's web81te al.. https'.11 www.Irc.org.uklaudilorsresponsibililies. This description forms part of our audilorfs report. Use of our report This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable ompany's m$mb$rs those matters we a￿ required lo slate lo them in an auditors, report and for no other purpose. To the fullest exienl permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company's members as a body, for our audit work, for this report. or for the opinions we have formed. Richard Haffenden MA (Cantabl FCA (Senior Statutory Auditor) for and on behalf of Jacob Cavenagh & Skeet 20 June 2022 Chartered Accountants Statutory Audltor 5 Robin Hood Lane Sutton Surrey SM12SW

EUROPEAN CHRISTIAN MISSION (BRITAIN)

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT

FOR THE YEAR ENDED 31 DECEMBER 2021

Unrestricted Designated
Restricted
funds
funds
funds
2021
2021
2021
Notes
£
£
£
Income and endowments from:
Donations and gifts
100,255
-
722,099
Legacies receivable
47,393
-
-
Investments
3
5,234
-
-
Other income
4
1,000
-
-
Total income
153,882
-
722,099
Expenditure on:
Raising funds
5
13,774
-
-
Charitable activities
6
212,873
1,001
604,273
Total resources expended
226,647
1,001
604,273
Net (outgoing)/incoming resources before
transfers
(72,765)
(1,001)
117,826
Gross transfers between funds
82,161
-
(82,161)
Net income for the year/
Net movement in funds
9,396
(1,001)
35,665
Fund balances at 1 January 2021
213,336
317,023
489,763
Fund balances at 31 December 2021
222,732
316,022
525,428		 TotalUnrestricted Designated
funds
funds
2021
2020
2020
£
£
£
822,354
101,631
-
47,393
65,390
-
5,234
7,504
-
1,000
2,703
-
875,981
177,228
-
13,774
11,670
-
818,147
218,148
-
831,921
229,818
-
44,060
(52,590)
-
-
79,886
-
44,060
27,296
-
1,020,122
186,040
317,023
1,064,182
213,336
317,023		 Restricted
funds
2020
£
744,365
-
-
-
744,365
-
680,682
680,682
63,683
(79,886)
(16,203)
505,966
489,763		 Total
2020
£
845,996
65,390
7,504
2,703
921,593
11,670
898,830
910,500
11,093
-
11,093
1,009,029
1,020,122

The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities. The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.

EUROPEAN CHRISTIAN MISSION (BRITAIN) BALANCE SHEET AS A T 31 DECEMBER 2021 2021 2020 Notes Fixed assets Tangible assets 10 5,555 13.045 Current assets Debtors Cash 81 bank and in hand 11 19,856 1,068,692 16.949 1.029,240 1,088,548 Credltors.. amounts falling due within one year 1.046,189 12 18,4641 (9.1121 N81 current a&sets 1,080,084 1.037,077 Total assets less current Ilabllities 1.085,639 1,050,122 Provisions for15abllltles 13 21,4S71 130,0001 Net assèts 1,064,182 1.020,122 Funds Restricted funds Designated funds Unrestricted funds 19 18 52S,428 316,022 222,732 489,763 317,023 213.336 1.064,182 1.020,122 These financAal statements have been piepartsd in accordance wlth the provisions applicable to companies subject to the small companies regime. The financial statements We￿ approved by the Trustees on 16 June 2022 Mike Mcmaslei (Chairl Trust&0 Company Registration No. 3277668

EUROPEAN CHRISTIAN MISSION (BRITAIN)

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2021

Notes
Cash flows from operating activities
Cash generated from operations
16
Investing activities
Purchase of tangible fixed assets
Investment income received
Net cash generated from investing
activities
Net cash used in financing activities
Net increase in cash and cash equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year		 2021
£
£
34,218
-
5,234
5,234
-
39,452
1,029,240
1,068,692		 2020
£
£
62,375
(3,771)
7,504
3,733
-
66,108
963,132
1,029,240

EUROPEAN CHRISTIAN MISSION (BRITAIN)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

1 Accounting policies

Charity information

European Christian Mission (Britain) is a charitable company limited by guarantee incorporated in England and Wales. The registered office is Unit F34/35, Moulton Park Business Centre, Redhouse Road, Northampton, NN3 6AQ.

1.1 Accounting convention

The financial statements have been prepared in accordance with the charity's Memorandum & Articles of Association, the Companies Act 2006 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)". The charity is a Public Benefit Entity as defined by FRS 102.

The financial statements are prepared in sterling , which is the functional currency of the charity . Monetary a mounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

1.2 Going concern

At the time of approving the financial statements, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3 Charitable funds

Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.

The charitable company has designated certain funds for specific purposes even though there is no legal force to the designations.

Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.

1.4 Income

Income is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.

Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.

Legacies are recognised on receipt or otherwise if the charity has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.

EUROPEAN CHRISTIAN MISSION (BRITAIN)

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

1 Accounting policies

(Continued)

1.5 Expenditure

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, 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 classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges are allocated on the portion of the asset’s use.

Costs of generating funds

This expenditure comprises costs incurred in encouraging people and organisations to contribute financially to the charitable company’s work. It includes the costs of advertising for funds and the costs of mounting appeals.

Charitable expenditure

This includes all expenditure directly related to the objects of the charitable company that of the advancement of Christian faith in Europe and elsewhere, and comprises the following:

Missionary support costs : Allowances paid to missionaries in accordance with the charitable company’s policies .

Development costs : Costs of staffing ECM (Britain) and associated costs of finance, personnel and general administration in supporting the operations for which the charitable company is responsible. These have been allocated in full to development costs and are explained in more detail in the financial statements.

Project costs : Funds paid in support of approved projects, either from incoming donations and gifts received for that purpose, or from unrestricted funds in accordance with the charitable company’s policies.

Support costs

These costs include the costs of governance arrangements which relate to the general running of the charitable company as opposed to the direct management functions inherent in general funds. This includes such terms as external audit, legal advice for the trustees and costs associated with constitutional and statutory matters. These are allocated to development costs.

There was a transfer made between restricted and unrestricted funds which is comprised of charges of up to 15% of the unrestricted overheads to cover attributable development and support overheads.

1.6 Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Fixtures and fittings

33.3% Straight Line

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities .

EUROPEAN CHRISTIAN MISSION (BRITAIN)

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

1 Accounting policies

(Continued)

All assets costing more than £1,000 are capitalised at cost and depreciated.

1.7 Impairment of fixed assets

At each reporting end date, the charity reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any ) .

1.8 Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.9 Financial instruments

The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the charity 's balance sheet when the charity becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Basic financial liabilities

Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future p aymen ts discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

Financial liabilities are derecognised when the charity ’s contractual obligations expire or are discharged or cancelled.

EUROPEAN CHRISTIAN MISSION (BRITAIN)

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

1 Accounting policies

(Continued)

1.10 Provisions

Provisions are recognised when the charity has a legal or constructive present obligation as a result of a past event, it is probable that the charity will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision i s measured at present value , the unwinding of the discount is recognised as a finance cost in net income/(expenditure) in the period in which it arises.

1.11 Employee benefits

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.12 Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.13 Foreign exchange

Income received from overseas is translated into sterling at the relevant exchange rate.

Costs incurred overseas are translated at the rate in operation on the date the funds were disbursed.

Assets and liabilities denominated in foreign currencies are translated at the rate in operation at the end of the charitable company’s financial period.

1.14 Job Retention Scheme government grant income

For JRS grant income, the income is recognised in the period to which the underlying furloughed staff costs relate to.

2 Critical accounting estimates and judgements

In the application of the charity’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

The key estimates and assumptions made in these accounts are:

EUROPEAN CHRISTIAN MISSION (BRITAIN)

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

2 Critical accounting estimates and judgements

(Continued)

Tangible fixed assets

The charity depreciates tangible assets over their estimated useful lives. The estimation of the useful lives of assets is based on historic performance as well as expectations about future use and therefore requires estimates and assumptions to be applied by management. The actual lives of these assets can vary depending on a variety of factors, including technological innovation, product life cycles and maintenance programmes.

Pension liability

T he liability of £ 21,457 (20 20 : £ 3 0,000) recognised in the financial statements is an estimate based on the annual cost and the ages of the former missionaries. This represents the amount provided for the future payments to former missionaries for a period of approximately 3 years .

3 Investments

Unrestricted Unrestricted
funds funds
2021 2020
£ £
Interest receivable 5,234 7,504

4 Other income

Unrestricted Unrestricted
funds funds
2021 2020
£ £
CJRS grant income - 2,703
Additional Trust income 1,000 -
1,000 2,703

5 Raising funds

Unrestricted Unrestricted
funds funds
2021 2020
£ £
Magazines/Publicity 13,774 11,670
13,774 11,670

EUROPEAN CHRISTIAN MISSION (BRITAIN)

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

6 Charitable activities

Develop- Missionary
Projects
ment
support
2021
2021
2021
£
£
£
Staff costs
153,135
-
-
Depreciation
7,490
-
-
Development expenses
3,537
-
-
Conferences
96
-
-
Pensions to retired missionaries
-
-
-
Office costs
36,170
-
-
Bank charges
478
-
-
Other costs
7,667
-
-
Governance costs
5,301
-
-
Missionary allowances and expenses
-
583,946
-
Projects
-
-
20,327
213,874
583,946
20,327
Analysis by fund
Unrestricted funds
212,873
-
-
Designated funds
1,001
-
-
Restricted funds
-
583,946
20,327
213,874
583,946
20,327
Auditor's remuneration
The analysis of auditor's remuneration is as follows:
Fees payable to the charity's auditor:
Audit of the charity's annual accounts		 Total
2021
£
153,135
7,490
3,537
96
-
36,170
478
7,667
5,301
583,946
20,327
818,147
212,873
1,001
604,273
818,147
2021
£
4,860		 Total
2020
£
153,536
7,206
3,034
5,000
(9,062)
45,261
455
6,686
6,032
661,110
19,572
898,830
218,148
-
680,682
898,830
2020
£
4,680

7 Auditor's remuneration

8 Trustees

No remuneration directly or indirectly out of the funds of the charitable company was paid or payable for the year to any Trustee or to any person or persons known to be connected with any of them.

Trustees attending meetings for the charitable company are entitled to reimbursement of their travelling e xpenses as appropriate. £ nil was claimed in 20 21 (20 20 : £ nil ).

During the year the t rustees of European Christian Mission (Britain) donated a total of £ 7,305 (20 20 : £ 628 ) in support of the missionaries.

EUROPEAN CHRISTIAN MISSION (BRITAIN)

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

9 Employees

The average monthly number of employees during the year was:

Employment costs
Wages and salaries
Social security costs
Other pension costs		 2021
Number
9
2021
£
137,147
5,100
10,888
153,135		 2020
Number
9
2020
£
137,522
5,035
10,979
153,536

There were no employees whose annual remuneration was £60,000 or more. The staff costs and numbers do not include the missionaries working abroad.

10 Tangible fixed assets

Tangible fixed assets
Fixtures and fittings
£
Cost
At 1 January 2021 79,838
Disposals (56,093)
At 31 December 2021 23,745
Depreciation and impairment
At 1 January 2021 66,793
Depreciation charged in the year 7,490
Eliminated in respect of disposals (56,093)
At 31 December 2021 18,190
Carrying amount
At 31 December 2021 5,555
At 31 December 2020 13,045

EUROPEAN CHRISTIAN MISSION (BRITAIN)

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

11
Debtors
Amounts falling due within one year:
Other debtors
Prepayments and accrued income
12
Creditors: amounts falling due within one year
Other taxation and social security
Other creditors
Accruals and deferred income
13
Provisions for liabilities
Movements on provisions:
At 1 January 2021
Utilisation of provision
At 31 December 2021		 2021
£
14,000
5,856
19,856
2021
£
1,155
2,629
4,680
8,464
2021
£
21,457		 2020
£
9,304
7,645
16,949
2020
£
2,321
2,111
4,680
9,112
2020
£
30,000
£
30,000
(8,543)
21,457

The charity makes pension payments to 4 former missionaries (2020: 4) at a cost of £8,543 for the year (2020: £10,938). The payments are mainly made from the charity's unrestricted fund and are charged against the provision in the year in which they are paid. Two of the missionaries died during the year.

14 Operating lease commitments

At the reporting end date the charity had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

2021 2020
£ £
Within one year 8,220 8,093

EUROPEAN CHRISTIAN MISSION (BRITAIN)

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

14 Operating lease commitments

(Continued)

Lease expense for the year 9,737 6,567

15 Related party transactions

There were no disclosable related party transactions during the year (2020 - none) .

Remuneration of key management personnel

The remuneration of key management personnel is as follows.

Aggregate compensation
16
Cash generated from operations
Surplus for the year
Adjustments for:
Investment income recognised in statement of financial activities
Depreciation and impairment of tangible fixed assets
Movements in working capital:
(Increase)/decrease in debtors
(Decrease) in creditors
(Decrease) in provisions
Cash generated from operations
17
Analysis of changes in net funds		 2021
£
111,072
2021
£
44,060
(5,234)
7,490
(2,907)
(648)
(8,543)
34,218		 2020
£
112,941
2020
£
11,093
(7,504)
7,206
76,188
(4,608)
(20,000)
62,375

The charity had no debt during the year.

EUROPEAN CHRISTIAN MISSION (BRITAIN)

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

18 Designated funds

The income funds of the charity include the following designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes:

Movement
in funds
Balance at Income
Balance at		 Expenditure Balance at
1 January 2020 1 January 2021 31 December
2021
£
£
£		 £ £
Projects 317,023
-
317,023		 (1,001)
316,022
317,023
-
317,023		 (1,001)
316,022

The designated fund represents amounts set aside for otherwise unfunded projects, plus the proceeds from the sale of the building in 2017.

EUROPEAN CHRISTIAN MISSION (BRITAIN)

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

19 Restricted funds

The income funds of the charity include restricted funds comprising the following unexpended balances of donations and grants held on trust for specific purposes:

Balance at
1 January 2020
£
ECMB Missionaries
418,386
Other Missionaries
13,491
Projects
74,089
505,966		 Movement in funds
Income
Expenditure
£
£
689,614
(619,516)
38,809
(41,592)
15,942
(19,574)
744,365
(680,682)		 Transfers
Balance at
1 January 2021
£
£
(76,051)
412,433
(1,703)
9,005
(2,132)
68,325
(79,886)
489,763		 Movement in funds
Income
Expenditure
£
£
655,873
(544,084)
42,057
(39,862)
24,169
(20,327)
722,099
(604,273)		 Transfers
Balance at
31 December
2021
£
£
(84,612)
439,610
3,020
14,220
(569)
71,598
(82,161)
525,428

The ECMB Missionaries fund is to support people working in a variety of church, mission and social action roles who are primarily linked to ECMB and supported by ECMB donors.

Other Missionaries are as above, but primarily linked to other ECM offices (e.g. ECMAusNZ), but where some donations are made via ECMB donors.

Projects are for ECMI or other projects supported by donors who wish to support work on a specific project.

The transfer of £ 82,161 (2020: £79,886) made between restricted and unrestricted funds is comprised of the charges up to 15% of the unrestricted overheads to cover attributable development and support overheads.

EUROPEAN CHRISTIAN MISSION (BRITAIN)

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

20
Analysis of net assets between funds
Unrestricted
funds
Designated
funds
Restricted
funds
2021
2021
2021
£
£
£
Fund balances at 31 December 2021 are
represented by:
Tangible assets
5,555
-
-
Current assets/(liabilities)
238,634
316,022
525,428
Provisions
(21,457)
-
-
222,732
316,022
525,428		 TotalUnrestricted
funds
Designated
funds
2021
2020
2020
£
£
£
5,555
13,045
-
1,080,084
230,291
317,023
(21,457)
(30,000)
-
1,064,182
213,336
317,023		 Restricted
funds
2020
£
-
489,763
-
489,763		 Total
2020
£
13,045
1,037,077
(30,000)
1,020,122