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2022-12-31-accounts

Charity number: 1062847

Africa Services International

Registered number: 3371156

Trustees' Report and unaudited Financial Statements

For the year ended 31 December 2022

AFRICA SERVICES INTERNATIONAL (A Company Limited by Guarantee)

CONTENTS

Page
Reference and Administrative Details of the Charity, its Trustees and Advisers 1 - 2
Trustees' Report 3 - 9
Independent Examiner's Report 10 - 11
Statement of Financial Activities 12
Balance Sheet 13
Statement of Cash Flows 14
Notes to the Financial Statements 15 - 29

AFRICA SERVICES INTERNATIONAL (A Company Limited by Guarantee)

REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY, ITS TRUSTEES AND ADVISERS For the year ended 31 December 2022

Key management personnel
Trustees
B C Rossington (Chair)
D T Baetz
T Basupi
P Chiang (appointed 22 June 2022)
P H F P Feniman
L V Hindley
R L Maples
C McDougall (appointed 23 June 2022)
D Pate
A P Swanson (appointed 22 June 2022)
R K Thiel
Senior management personnel J A Barry
P J Everingham
K W Hart
K J Lewis
W L Middleton
R K Thiel
Company registered number 3371156
Charity registered number 1062847
Registered office Scott Place, Unit E
Abbey Wood Business Park
Emma-Chris Way
Filton
Bristol
BS34 7JU

AFRICA SERVICES INTERNATIONAL (A Company Limited by Guarantee)

REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY, ITS TRUSTEES AND ADVISERS For the year ended 31 December 2022

Independent examiner Jonathan Marchant FCA
Mazars LLP
Chartered Accountants & Registered Auditors
90 Victoria Street
Bristol
BS1 6DP
Bankers UK HSBC Bank plc
Grosvenor Court
149 Whiteladies Road
Bristol
BS8 2RR
Bankers International Bank of America
2727 South 48th Street
Tempe
AZ 85282 USA
Solicitors Tozers LLP
Broadwalk House
Southernhay West
Exeter
EX1 1UA
Investment manager Merrill
225 Liberty Street 41st Floor
New York
NY 10281 USA

AFRICA SERVICES INTERNATIONAL (A Company Limited by Guarantee)

TRUSTEES' REPORT For the year ended 31 December 2022

The Trustees (who are also the directors of the Charity for the purposes of the Companies Act) present their annual report together with the independently examined financial statements of Africa Services International ("ASI" or "the Charity") for the year ended 31 December 2022. The Trustees confirm that the annual report and financial statements of the Charity comply with the current statutory requirements, the requirements of the Charity's governing document and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2015).

Purpose, objectives and activities

ASI exists as a charity for the purpose of providing leadership and administration to a group of independent charities that co-operate together under the organisational name of AIM International. These charities include Mobilising Organisations that mobilise personnel to accomplish the stated goal of the larger organisation: "Go and make disciples of all nations, baptising them in the name of the Father and the Son and of the Holy Spirit, and teaching them to obey everything I have commanded you."

In setting objectives and planning activities, the Trustees have given due consideration to general guidance published by the Charity Commission relating to public benefit and in particular to its supplementary public benefit guidance on The Advancement of Religion for the Public Benefit.

Achievements and performance

ASI’s Board of Trustees met two times, in person, in June and November of 2022. In addition to reviewing the stated ends of the organisation and receiving reports on the progress towards those ends, the Trustees spent considerable time on 2 subjects: revising the AIM International constitution, and setting up the procedure for selecting the next AIM International Director. The Trustees are almost ready to submit the constitutional change proposal to the AIM membership for a ratification vote, and has appointed a committee to oversee the appointment of the next AIM International Director. The current AIM International Director will finish his term of service at the end of 2025.

The Board of Trustees is working to lead AIM International under the following revised ends statement:

In dependence on the grace and power of the Lord, in partnership with African churches, with priority for unreached people groups:

Christ-centred, reproducing, culturally-appropriate churches formed among African peoples.

AFRICA SERVICES INTERNATIONAL (A Company Limited by Guarantee)

TRUSTEES' REPORT (continued) For the year ended 31 December 2022

Achievements and performance (continued)

Specific sub-ends of the Charity include the training of African church leaders, mobilising of African missionaries, inviting African missionaries into AIM International's membership, engaging and reaching unreached people groups with the Gospel, reaching out to Africans who live outside of Africa, and a commitment to challenging, equipping, and educating the church in the organisation's sending nations towards mission through AIM International. The International Director reports to the Board of Trustees detailing progress towards each of these ends (most of the sub-ends have now been incorporated into the revised AIM International ends statement).

The Trustees and other personnel were able to travel in Africa during 2022, in spite of the Covid-19 pandemic. The Trustees provide mentorship for field-based leaders and encourage and facilitate dialogue with partner churches and other like-minded organisations.

The International Director worked on a Global Integrated Strategic Plan in 2022, as required by the Board of Trustees. This plan was presented at the end of 2022 and will be applied by AIM International in the years following.

ASI held different training and management meetings online for its members and leaders in 2022. An annual meeting for leaders of AIM International was held in Nairobi in February 2022. The 35 attendees made significant progress regarding discussing member care of AIM International missionaries, clarifying the distinctives of AIM International, and especially in dealing with racism and ethnocentrism that affected AIM International in the past. A second training meeting was held in Nairobi in June 2022, and dealt entirely with “interculturalism", and trained the 85 AIM International leaders who attended, in intercultural principles and how to lead multi-cultural teams.

During 2022 ASI provided assistance to the AIM International mobilising offices located in South Africa and Brazil, both of which have struggled financially. The International Director also visited the Australia, Canada, Europe, Korea, South Africa, and USA mobilizing offices in 2022, as well as connecting with all Mobilizing Directors throughout the year via the internet.

ASI also assisted a number of African missionaries in 2022 through its African Missionary Assistance fund, which provides financial assistance of up to $1,000 per missionary in support of their ministry. ASI's Majority World Missionary Assistance fund sponsored a number of other missionaries from Africa and Brazil, up to a cap of $5,000 per individual. AIM International is placing a specific emphasis on the mobilization of African missionaries and therefore ASI will continue to support initiatives that seek to achieve this.

During 2022 ASI received a gift totalling £34,006 for the African Missionary Assistance fund through the generous provision of a large grant entitled "The Messenger Fund" that has been administered by the USA mobilizing office on behalf of ASI and AIM International. The Messenger Fund grants have now been entirely distributed.

AFRICA SERVICES INTERNATIONAL (A Company Limited by Guarantee)

TRUSTEES' REPORT (continued) For the year ended 31 December 2022

Financial review

ASI received unrestricted income which amounted to £479,994 for the year ended 31 December 2022 (2021: £468,857). Restricted income for the year amounted to £146,363 compared with £168,185 in 2021. Unrestricted expenditure amounted to £400,267 (2021: £343,726). Restricted expenditure amounted to £124,603 (2021: £232,316). The net movement in funds for the year amounted to an outflow of £57,559 (2021: £248,967 inflow) after unrealised losses on investments of £159,046 (2021: £187,967 gains) and exchange gains of £188,695 (2021: £22,904 gains).

ASI's income from charitable activities was £232,902 for the year ended 31 December 2022 compared with £337,401 in 2021. This decrease in charitable income compared to the previous year was expected as member allocation charges for 2022 were reduced by 55%.

ASI received unrestricted donations and gifts totalling £48,687, most of which related to ASI's share of the disposal proceeds from the sale of AIM International's property in Mayotte, which was administered by AIM International's French office. During 2022 the Trustees allocated £48,115 of ASI's general funds to a new AIM West Africa designated fund, details of which are provided in Note 12 of the financial statements.

Investment policy and performance

Stewardship is the driving principle regarding how ASI manages finances in general and specifically how the Charity invests the reserve funds of ASI. Detailed below are the investment stewardship principles that ASI has adopted:

  1. Investments must be made with an appropriate awareness of the need to protect capital;

  2. Investment of reserves and other liquid assets must take into consideration the need for liquidity to meet cash flow needs;

  3. Investments and holdings must seek to take advantage of opportunities for competitive returns; and

  4. Investments must address currency risks.

ASI has invested its cash reserves with Merrill which at 31 December 2022 had a market value of £1,376,181. The portfolio reported an unrealised loss in the 12 months to 31 December 2022 of £159,046. The annualised return on investments for the entire investment period, net of fees, at 31 December 2022 was (11.98)% (2021: 6.72%). This compares with the following benchmarks: S&P 500 Total Return: (18.11)%; BofAML US Broad Market Bond: (8.62)%; and US Treasury Bill 30 Days: 1.25%.

AFRICA SERVICES INTERNATIONAL (A Company Limited by Guarantee)

TRUSTEES' REPORT (continued) For the year ended 31 December 2022

Reserves policy and going concern

ASI has a stated reserves policy that specifies that the Charity must maintain minimum general reserves greater than or equal to 6 months' or 50% of ASI's budgeted operating expenditure. ASI's budgeted costs for 2023 is £291,500, and its budgeted income is £196,000, resulting in a budgeted deficit of £95,500. This is due the Trustees' decision to significantly reduce budgeted member allocation income for at least the next three years until 2024. As a result, the Trustees expect to utilise some of ASI's retained general reserves in order to continue to fund its charitable activity at normal levels, thereby reducing the amount of general reserves ASI has over this time.

ASI's general fund reserve at 31 December 2022 was £930,167 (2021: £990,316). Designated funds decreased from £1,482,822 in 2021 to £1,463,652 at 31 December 2022. The Charity's reserves during the financial year were therefore maintained at a level well over the policy's minimum requirement and the Trustees hope that its decision to reduce member allocation income for a period of at least three years until 2024 will allow ASI's general reserves to align more closely with its stated reserves policy, specifically in regard to the maximum amount of general reserves the Charity is required to maintain to fund its normal charitable activity.

ASI manages a number of international projects which results in it holding restricted funds at any time. Restricted funds increased from £199,952 in 2021 to £221,712 at 31 December 2022. ASI also owns an office property and a number of residential properties occupied by personnel who serve at the Charity. The properties were historically purchased using the Charity's general funds.

Plans for the future

ASI will continue to pursue the objectives of AIM International as stated above, including the sub-objectives as defined by the Board of Trustees. The priority for the unreached peoples of Africa to hear the Gospel will continue to be the focus of activity.

ASI continues to support AIM International through the provision of a wide range of activities, which includes services in the areas of child safety, health ministry, education and wellbeing of third culture children, crisis and contingency planning, encouraging language acquisition, training and leadership development, developing partnership initiatives, supporting Africans in theological education, advising on the use of information technology, and providing financial and personnel co-ordination and member care services.

Structure, governance and management

Constitution

Africa Services International is a registered charity (No. 1062847) and also a company limited by guarantee (No. 3371156), registered in England and Wales. The Charity is governed by its memorandum and articles of association.

AFRICA SERVICES INTERNATIONAL (A Company Limited by Guarantee)

TRUSTEES' REPORT (continued) For the year ended 31 December 2022

Structure, governance and management (continued)

Method of appointment or election of trustees (continued)

The Charity's Trustees are selected based on their membership and position within the worldwide organisation known as AIM International. Executive officers of some of the constitutionally defined bodies of AIM International and members of AIM international are invited to serve as Trustees of ASI in a nonexecutive capacity for a two-year term.

New Trustees receive induction training from the International Director and the Chair of ASI as required. The Board also receives training periodically in relation to governance, risk management and their other legal responsibilities as Trustees of ASI.

Policy Governance and the Charity Governance Code for smaller charities

The Board of Trustees utilise the practices found in Policy Governance. The Board welcomes the guidance contained in the Charity Governance Code for smaller charities published in July 2017. The Trustees' application of Policy Governance ensures that the principles outlined in the Charity Governance Code are regularly reviewed and proportionately applied to ASI's operational context.

Organisational structure and decision making

AIM International's 7 Mobilising Councils send members to work together in countries in Africa or with African peoples living in their home country.

Members are assigned to work in either one of 5 regions or one of 2 departments.

ASI co-ordinates the placement of AIM International's personnel and provides leadership, strategic planning, leadership development and accountability to ensure that AIM International as a worldwide organisation is accomplishing its stated objectives.

Related parties and co-operation with other organisations

None of the Trustees receive remuneration or other benefit by reason of their position as a Trustee from their work with ASI. Trustees are required to disclose to the Board of Trustees all relevant connections and interests in the same way as any other contractual relationship with a related party. During the year no such related party transactions were reported save for the Trustees' common interest as representatives of AIM International. The Charity's relationship with the Mobilising and Receiving Organisations that make up AIM International is set out in Note 14 to the financial statements.

Key management personnel

The Board of Trustees provides governance for the organisation and guidance and accountability for the International Director. Key management personnel of the Charity comprise the International Director, the Africa Ministries Director, the Chief Finance Officer, the African Development Director, the Innovation Director, the Personnel Director, who are in charge of operating the Charity on a day to day basis. All Trustees give of their time freely and no Trustee received remuneration in the year. Details of Trustee expenses and related party transactions are disclosed in Note 4 to the financial statements.

4t ~~A~~ FRICA SERVICES INTERNATIONAL ~~(A~~ Company Limited by Guarantee)

TRUSTEES' REPORT (continued) For the year ended 31 December 2022

Structure, governance and management (continued)

Volunteers

The Charity relies on voluntary help from members of AIM International to fulfil most of its key management personnel roles and in providing administrative and other practical support to the organisation. With the exception of the Africa Ministries Director, the Chief Finance Officer and the Director of African Mobilisation all other key management personnel roles were fulfilled by volunteers during the year. The pay of senior staff is reviewed annually and normally increased in accordance with average earnings. Remuneration is bench-marked with charities of a similar size and activity to ensure that the remuneration set is fair and not out of line with that generally paid for similar roles.

Risk management

The Trustees have a risk management strategy which comprises:

A key element in the management of financial risk is the regular review of reserves and the availability of liquid funds to settle debts as they fall due. The Charity currently has a good level of unrestricted reserves which mitigates this risk in the medium term.

Attention is also given to non-financial risks including governance and operational risks, external and environmental risks and compliance with law and regulations. The risk management review identified the controversy over COVID-19 vaccination, particularly for North American members of AIM International, presented a considerable risk to the organisation. A number of AIM International members who did not wish to be vaccinated resigned, however this issue is more-or-less resolved at this point, and vaccine mandates have been lifted.

The availability of key management personnel who are eligible to reside in the UK during their term of office is a major non-financial risk for the Charity. A key element in the management of this non-financial risk is the regular monitoring of UK Visa and Immigration policy, undertaking personnel contingency planning and developing procedures that facilitate international operational flexibility.

AFRICA SERVICES INTERNATIONAL (A Company Limited by Guarantee)

TRUSTEES' REPORT (continued) For the year ended 31 December 2022

Trustees' responsibilities statement

The Trustees (who are also directors of ASI for the purposes of company law) are responsible for preparing a trustees' annual report and financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the charity trustees to prepare financial statements for each year which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing these financial statements, the trustees are required to:

The Trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

This report has been prepared in accordance with the small companies regime of the Companies Act 2006 and was approved by the Trustees and signed on their behalf by:

R K Thiel

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Date
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23 June 2023

AFRICA SERVICES INTERNATIONAL (A Company Limited by Guarantee)

INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF AFRICA SERVICES INTERNATIONAL

I report on the financial statements of Africa Services International for the year ended 31 December 2022 which are set out on pages 12 to 29.

Respective responsibilities of trustees and examiner

The trustees (who are also directors of the company for the purposes of company law) are responsible for the preparation of the financial statements in accordance with the requirements of the Companies Act 2006 ('the 2006 Act').

Having satisfied myself that the financial statements of the charity are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of the charity’s financial statements as carried out under section 145 of the Charities Act 2011 ('the 2011 Act'). In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(b) of the 2011 Act.

This report, including my statement, has been prepared for and only for the charity's trustees as a body. My work has been undertaken so that I might state to the charity's trustees those matters I am required to state to them in an independent examiner's report and for no other purpose. To the fullest extent permitted by law, I do not accept or assume responsibility to anyone other than the charity and the charity's trustees as a body for my examination work, for this report, or for the statements I have made.

Basis of the independent examiner's report

My examination was carried out in accordance with the general Directions given by the Charity Commission. An examination includes a review of the accounting records kept by the charity and a comparison of the financial statements presented with those records. It also includes consideration of any unusual items or disclosures in the financial statements, and seeking explanations from you as trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit, and consequently no opinion is given as to whether the financial statements present a 'true and fair view' and the report is limited to those matters set out in the statement below.

Independent examiner's statement

Since the charity's gross income exceeded £250,000, your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination by being a qualified member of the Institute of Chartered Accountants in England & Wales which is one of the listed bodies.

AFRICA SERVICES INTERNATIONAL (A Company Limited by Guarantee)

INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF AFRICA SERVICES INTERNATIONAL

In connection with my examination, which is complete, no matters have come to my attention which give me reasonable cause to believe that in any material respect:

I have no concerns and have come across no other matters in connection with the examination to which, in my opinion, attention should be drawn in order to enable a proper understanding of the financial statements to be reached.

Signed: Jonathan Marchant FCA

Mazars LLP 90 Victoria Street Bristol BS1 6DP

Date: 17 July 2023

AFRICA SERVICES INTERNATIONAL (A Company Limited by Guarantee)

STATEMENT OF FINANCIAL ACTIVITIES (incorporating the Income and Expenditure Account) For the year ended 31 December 2022

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Restricted Unrestricted
funds funds 2022 2021
Note £ £ £ £
Income
Donations and gifts 2 146,363 48,687 195,050 266,630
Income from charitable activities 2 - 232,902 232,902 337,401
Investment income 2 - 198,405 198,405 33,011
Total income 146,363 479,994 626,357 637,042
Expenditure
Expenditure on charitable activities 3 124,603 400,267 524,870 576,042
Total expenditure 124,603 400,267 524,870 576,042
Net income / (expenditure) before
gains / (losses) on investments 21,760 79,727 101,487 61,000
Net gain / (loss) on investments 8 - (159,046) (159,046) 187,967
Net income / (expenditure) before transfers 21,760 (79,319) (57,559) 248,967
Transfers between funds 11,12 - - - -
Net income / (expenditure) and net
movement in funds for the year 21,760 (79,319) (57,559) 248,967
Reconciliation of funds
Total funds at the start of the year 199,952 2,473,138 2,673,090 2,424,123
Total funds at the end of the year 13 221,712 2,393,819 2,615,531 2,673,090
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The statement of financial activities includes all gains and losses recognised in the year.

All income and expenditure relates to continuing activities.

The notes on pages 15 to 29 form part of these financial statements.

AFRICA SERVICES INTERNATIONAL (A Company Limited by Guarantee)

Registered number 3371156 BALANCE SHEET As at 31 December 2022

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31 December 2022 31 December 2021
Note £ £ £ £
Fixed assets
Intangible assets 6 168,520 134,833
Tangible assets 7 574,194 575,597
Investments 8 1,376,181 1,388,270
2,118,895 2,098,700
Current assets
Debtors 9 72,790 55,589
Cash at bank and in hand 467,914 558,772
540,704 614,361
Creditors
Amounts falling due within one year 10 (44,068) (39,971)
Net current assets 496,636 574,390
Total assets less current liabilities 2,615,531 2,673,090
Net assets 2,615,531 2,673,090
Charity funds
Restricted funds 11 221,712 199,952
Unrestricted funds 12 2,393,819 2,473,138
2,615,531 2,673,090
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For the year ended 31 December 2022, ASI was entitled to exemption from the requirement to have an audit under the provisions of section 477 of the Companies Act 2006. No notice has been deposited with the Charity under section 476 of the Companies Act 2006 requiring an audit to be carried out.

The Trustees acknowledge their responsibility for:

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies’ regime.

The financial statements were approved by the Trustees and signed on their behalf by:

R K Thiel

Date 23 June 2023

The notes on pages 15 to 29 form part of these financial statements.

AFRICA SERVICES INTERNATIONAL (A Company Limited by Guarantee)

STATEMENT OF CASH FLOWS For the year ended 31 December 2022

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2022 2022 2021 2021
£ £ £ £
Cash flow from operating activities
Net movement in funds (57,559) 248,967
Add: Depreciation of tangible assets 495 447
Less: Interest (included in investing activities) (318) (33)
Less: Foreign exchange rates (201,686) (26,569)
Less: Investment revaluation gain 159,046 (187,967)
Add: Investment portfolio charges 12,946 13,756
Decrease / (increase) in debtors (17,201) 67,464
Increase / (decrease) in creditors 4,097 24,106
(42,621) (108,796)
Net cash inflow / (outflow) from operating activities (100,180) 140,171
Cash flows from investing activities
Purchase of intangible assets (33,687) (134,833)
Purchase of tangible assets - (1,485)
Proceeds from sale of tangible assets 908 -
Purchase of investments - (223,134)
Proceeds from sale of investments - 163,337
Interest received 318 33
Net cash inflow / (outflow) from investing activities (32,461) (196,082)
Net change in cash and cash equivalents (132,641) (55,911)
Cash and cash equivalents at the start of the year 558,772 609,262
Change in cash and cash equivalents due to
exchange rate movements 41,783 5,421
Cash and cash equivalents at the end of the year 467,914 558,772
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An analysis of the changes in net debt is provided in Note 16 of the financial statements.

The notes on pages 15 to 29 form part of these financial statements.

AFRICA SERVICES INTERNATIONAL (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2022

General Information

ASI is a private company limited by guarantee and registered in England and Wales (Company Number 3371156 and Charity Number 1062847). Its registered office is Scott Place, Unit E, Abbey Wood Business Park, Emma-Chris Way, Filton, Bristol, BS34 7JU.

1. Accounting policies

1.1 Basis of preparation

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 (FRS 102) (effective 1 January 2015) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

Africa Services International meets the definition of a public benefit entity under FRS 102. The presentation currency of the financial statements is Sterling (£) and the financial statements are rounded to the nearest £. The comparative period is for the year ended 31 December 2021.

Going concern basis of preparation

After reviewing the Charity's forecasts and projections, the Trustees have a reasonable expectation that the Charity has adequate resources to continue in operational existence for the foreseeable future. The Charity therefore continues to adopt the going concern basis in preparing its financial statements.

1.2 Company status

Legal status

The Charity is a company limited by guarantee and has no share capital. The members of the company are the Trustees named on page 1 of these financial statements. In the event of the Charity being wound up, the liability in respect of the guarantee is limited to £1 per member of the Charity. At 31 December 2022 there were 11 members (2021: 8).

Taxation

The company is registered with the Charity Commission as a charity and its main activities are exempt from taxation in accordance with the Corporation Tax Act 2010.

1.3 Income

Income is recognised in the Statement of Financial Activities when the Charity has entitlement to the funds and it is probable that the income will be received and the amount can be measured reliably.

AFRICA SERVICES INTERNATIONAL (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2022

1. Accounting policies (continued)

1.3 Income (continued)

In accordance with the Charities SORP (FRS 102), the contribution made by unpaid volunteers to the Charity is not recognised as income in the financial statements. A description of the role played by volunteers and the nature of their contribution is provided in Note 5 to the financial statements.

1.4 Deferred income

Income received in advance is deferred in the Balance Sheet until the criteria for income recognition is met, at which point the income is recognised in the Statement of Financial Activities.

1.5 Fund accounting

Unrestricted funds are available to spend on activities that further any of the purposes of the Charity. Designated funds are unrestricted funds of the Charity which the Trustees have decided at their discretion to set aside to use for a specific purpose. Restricted funds are donations which the donor has specified are to be solely used for particular areas of the Charity's work or for specific projects being undertaken by the Charity.

1.6 Expenditure and irrecoverable VAT

Expenditure is recognised once there is a legal or constructive obligation to make payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably.

Expenditure on charitable activities comprises direct charitable expenditure and support costs incurred in overseeing and supporting the activities of AIM International and in the running of the International Office. Governance costs are those costs incurred in connection with administration of the Charity and compliance with constitutional and statutory requirements.

Irrecoverable VAT is charged as a cost against the activity for which the expenditure was incurred.

1.7 Intangible fixed assets

Intangible fixed assets are measured at cost less accumulated amortisation and any accumulated impairment losses.

AFRICA SERVICES INTERNATIONAL (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2022

1. Accounting policies (continued)

1.7 Intangible fixed assets (continued)

Software development costs are recognised as an intangible asset when the technical feasibility of the software has been proven, the software is in use within the Charity, it has been determined that the software will generate future economic benefits, there are sufficient resources to complete its development and there is an ability to measure reliably the expenditure attributable to the software during its development.

Amortisation is charged so as to allocate the cost of intangibles less their residual values over their estimated useful lives, using the straight-line method. Intangible assets are amortised over the following useful economic lives:

If there is an indication that there has been a significant change in amortisation rate or residual value of an asset, the amortisation of that asset is revised prospectively to reflect the new expectations.

No amortisation is charged on assets in the course of construction until they are brought into operational use, at which point the assets are transferred to the relevant asset category and are amortised over their useful economic life.

1.8 Tangible fixed assets

Tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses.

Depreciation is calculated to write down the cost less estimated residual value of all tangible fixed assets other than property costing over £1,000, over their expected useful lives, using the straight-line method. The rates applicable are:

Freehold and long leasehold property is not depreciated as it is the Trustees' policy to maintain them to a high standard. As a result the properties maintain their residual value at least equal to the book value. This means that any depreciation charged in the year and accumulative depreciation is rendered minimal. The properties are reviewed for impairment, in accordance with Section 27 of FRS 102, at the end of each accounting period.

1.9 Investments

Investments are stated at their market value on the balance sheet date. Realised and unrealised gains or losses are accounted for in the Statement of Financial Activities.

AFRICA SERVICES INTERNATIONAL (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2022

1. Accounting policies (continued)

1.10 Debtors

Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amounts relating to future periods.

1.11 Cash at bank and in hand

Cash at bank and in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

1.12 Creditors

Creditors are recognised where the Charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors are normally recognised at their settlement amount after allowing for any trade discounts due.

1.13 Financial Instruments

The Charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value.

1.14 Foreign currency translation

The functional and presentation currency of the Charity is Sterling (£). Transactions in foreign currencies are translated into Sterling at the rate ruling on the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated into Sterling at the rate of exchange prevailing on the balance sheet date. Exchange differences are recognised in the Statement of Financial Activities in the period in which they arise.

1.15 Pension costs

Contributions to defined pension contribution plans on behalf of employees are recognised as an expense in the Statement of Financial Activities in the period in which they are incurred.

AFRICA SERVICES INTERNATIONAL (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2022

2. Income

Income from donations and gifts
Donations and gifts
Income from charitable activities
Member allocations
Conference, training, IT & support income
Investment income
Rental income
Sundry income
Interest received
Exchange gains
Total income		 Restricted Unrestricted
funds
funds
£
£
146,363
48,687
-
168,006
-
64,896
-
232,902
-
8,800
-
592
-
318
-
188,695
-
198,405
146,363
479,994		 2022
£
195,050
168,006
64,896
232,902
8,800
592
318
188,695
198,405
626,357		 2021
£
266,630
275,072
62,329
337,401
10,052
22
33
22,904
33,011
637,042

In 2021 income of £468,857 was attributable to unrestricted funds and £168,185 was attributable to restricted funds.

Income analysed geographically was as follows:
3.
Expenditure
Expenditure on charitable activities
Direct charitable expenditure
Governance costs
Support costs
Total expenditure		 United Kingdom
Europe
Rest of the World
Restricted Unrestricted
funds
funds
£
£
124,603
228,614
-
17,105
-
154,548
124,603
400,267		 2022
21%
8%
71%
2022
£
353,217
17,105
154,548
524,870		 2021
25%
-
75%
2021
£
383,344
17,320
175,378
576,042

AFRICA SERVICES INTERNATIONAL (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2022

3. Expenditure (continued)

In 2021 expenditure of £343,726 was attributable to unrestricted funds and £232,316 was attributable to restricted funds.

Net income / (expenditure) is stated after charging:

----- Start of picture text -----
|||| |---|---|---| |2022|2021| |£|£| |Depreciation|495|447| |Independent examiner's fee|3,720|3,540|

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

a) Analysis of direct charitable expenditure

----- Start of picture text -----
||||||| |---|---|---|---|---|---| |Restricted|General|Designated| |funds|fund|funds|2022|2021| |£|£|£|£|£| |Directorate travel and activities|-|19,090|-|19,090|11,145| |Consultant travel and activities|-|52,831|-|52,831|31,295| |Meetings, conferences and training|-|75,356|2,451|77,807|16,673| |Ministry and outreach support|124,603|-|56,457|181,060|256,989| |Development activities|-|13,480|8,949|22,429|67,242| |124,603|160,757|67,857|353,217|383,344|

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

In 2021 direct charitable expenditure of £73,736 was attributable to unrestricted general funds, £77,292 was attributable to designated funds and £232,316 was attributable to restricted funds.

b) Analysis of governance costs

----- Start of picture text -----
|||||| |---|---|---|---|---| |Restricted|General| |funds|fund|2022|2021| |£|£|£|£| |International Council meeting costs|-|13,385|13,385|13,780| |Independent examiner's fee|-|3,720|3,720|3,540| |-|17,105|17,105|17,320|

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

In 2021 all £17,320 of governance costs was attributable to unrestricted funds.

AFRICA SERVICES INTERNATIONAL (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2022

3. Expenditure (continued)

c) Analysis of support costs

Restricted
funds
£
Staff costs
-
Co-operative support
-
Residency and housing support
-
Insurance and business rates
-
Property repairs and maintenance
-
Office running costs
-
IT, communication and printing costs
-
Depreciation
-
Bank and portfolio charges
-
-		 General
fund
£
92,659
1,956
7,552
4,070
3,335
5,260
25,845
495
13,376
154,548		 Designated
funds
£
-
-
-
-
-
-
-
-
-
-		 2022
£
92,659
1,956
7,552
4,070
3,335
5,260
25,845
495
13,376
154,548		 2021
£
113,715
1,898
9,093
5,873
2,626
5,498
21,842
447
14,386
175,378

In 2021 all £175,378 of support costs was attributable to unrestricted funds.

4. Staff costs, trustee remuneration and expenses, and the cost of key management personnel

Staff costs during the year were as follows:

Salaries and wages
Social security costs
Pension costs		 2022
£
79,496
3,809
9,354
92,659		 2021
£
98,519
6,214
8,982
113,715

No employees had employee benefits in excess of £60,000 (2021: nil).

No Trustee received any remuneration from the Charity for their services as a trustee during the year (2021: £nil) neither were they reimbursed expenses during the year (2021: £nil).

The total employee benefits of the key management personnel of the Charity was £76,203 (2021: £95,516).

AFRICA SERVICES INTERNATIONAL (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2022

5. Staff numbers

The average monthly number of employees during the year was as follows:

----- Start of picture text -----
|||| |---|---|---| |2022|2021| |No.|No.| |Administration|3|4|

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

In addition to its employees, the Charity received voluntary help from members of AIM International which amounted to an additional 5 Full Time Equivalent staff during the year (2021: 5).

6. Intangible fixed assets

----- Start of picture text -----
||||| |---|---|---|---| |Assets in|Software| |the course|development| |of construction|costs|Total| |£|£|£| |Cost| |At 1 January 2022|134,833|206,277|341,110| |Additions|33,687|-|33,687| |At 31 December 2022|168,520|206,277|374,797| |Amortisation and Impairment| |At 1 January 2022|-|206,277|206,277| |Charge in the year|-|-|-| |At 31 December 2022|-|206,277|206,277| |Net book value| |At 31 December 2022|168,520|-|168,520| |At 31 December 2021|134,833|-|134,833|

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

Amortisation of intangible fixed assets is included in expenditure on charitable activities within support costs.

Assets in the course of construction

ASI's human resources software system is included as an intangible fixed asset within software development costs. During the year ended 31 December 2020 the system was written down to nil value as it has reached the end of its useful economic life. This system is being replaced by a new Member Management Platform (MMP) system, the cost of which has been capitalised as an intangible fixed asset in the course of construction. Once the MMP system becomes operational the value of the asset will be transferred to Software development costs, at which point the system's cost will be amortised over its useful economic life.

AFRICA SERVICES INTERNATIONAL (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2022

7. Tangible fixed assets

Properties &
improvements
£
Cost
At 1 January 2022
574,194
Disposals
-
At 31 December 2022
574,194
Depreciation
At 1 January 2022
-
Charge in the year
-
Disposals
-
At 31 December 2022
-
Net book value
At 31 December 2022
574,194
At 31 December 2021
574,194		 Computers &
equipment
£
6,102
(2,869)
3,233
4,699
495
(1,961)
3,233
-
1,403		 Total
£
580,296
(2,869)
577,427
4,699
495
-
5,194
574,194
575,597

Property historic cost and value

At 31 December 2022 the Charity owned 5 properties in Bristol which had a combined historic cost of £524,770. Four properties are freehold (historic cost: £469,690) and one property is long leasehold (historic cost: £55,080).

Subsequent capital improvements on certain of these properties has increased their historic cost by £49,424. All of the properties are shown in the financial statements at their historic cost.

The Trustees believe the market value of the Charity's properties significantly exceeded their historic cost. The properties had a combined insurance value of approximately £1.45 million.

8. Fixed asset investments

Market value
At 1 January 2022
Portfolio charges
Revaluation loss
Exchange rate gain
At 31 December 2022		 Listed
securities
£
1,388,270
(12,946)
(159,046)
159,903
1,376,181

AFRICA SERVICES INTERNATIONAL (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2022

8. Fixed asset investments (continued)

All of ASI's fixed asset investments were held overseas in a pooled investment fund arrangement on behalf of AIM International. The pooled investments comprise equity and fixed income holdings which are managed on behalf of the Charity by Merrill.

9. Debtors

2022
£
Due within one year
Other debtors
2,608
Prepayments and accrued income
70,182
72,790
Creditors: Amounts falling due within one year
2022
£
Other creditors
24,081
Accruals and deferred income
19,987
44,068
An analysis of the movement in deferred income during the year was as follows:
At 1 January 2022
Resources deferred during the year
At 31 December 2022		 2021
£
251
55,338
55,589
2021
£
30,925
9,046
39,971
Deferred
income
£
-
6,912
6,912

10. Creditors: Amounts falling due within one year

AFRICA SERVICES INTERNATIONAL (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2022

11. Analysis of movements in restricted funds

Year ended 31 December 2022:

African MK Education Fund
Majority World Missionary
African Missionary Assistance
Famine Relief & Crisis Response
International Strategic Outreach
COVID-19 Member Assistance
Assistance
Restricted funds
National Leaders Ministry Fund
TIMO Development
Support Funds		 Brought
forward
£
47,191
-
230
95,670
2,708
36,809
2,169
12,439
2,736
199,952		 Incoming
resources
£
63,098
7,201
-
9,328
671
17,803
625
40,885
6,752
146,363		 Resources
expended
£
(7,082)
(1,052)
(230)
(22,044)
(3,284)
(49,221)
-
(41,690)
-
(124,603)		 Transfers
in / (out)
£
-
-
-
-
-
-
-
-
-
-		 Carried
forward
£
103,207
6,149
-
82,954
95
5,391
2,794
11,634
9,488
221,712

Year ended 31 December 2021:

Restricted funds
African Missionary Assistance
COVID-19 Member Assistance
Famine Relief & Crisis Response
International Strategic Outreach
Majority World Missionary
Assistance
National Leaders Ministry Fund
Support Funds
TIMO Development		 Brought
forward
£
40,438
898
145,688
11,287
57,472
1,494
10,032
9,703
277,012		 Incoming
resources
£
53,367
-
37,171
17,139
17,777
675
41,849
207
168,185		 Resources
expended
£
(46,614)
(668)
(87,189)
(25,718)
(25,511)
-
(39,442)
(7,174)
(232,316)		 Transfers
in / (out)
£
-
-
-
-
(12,929)
-
-
-
(12,929)		 Carried
forward
£
47,191
230
95,670
2,708
36,809
2,169
12,439
2,736
199,952

Restricted fund transfers during the year ended 31 December 2021 comprised a transfer of £12,929 from ASI's Majority World Member Assistance fund to ASI's African Member Support fund relating to ASI's employment costs and support costs for some of AIM International's African leaders.

AFRICA SERVICES INTERNATIONAL (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2022

11. Analysis of movements in restricted funds (continued)

Description of restricted funds

12. Analysis of movements in unrestricted funds

Year ended 31 December 2022:

Brought
Incoming
forward
resources
£
£
Designated funds
1,482,822
48,687
General fund
990,316
431,307
2,473,138
479,994
Designated funds comprise the following:
Brought
forward
£
35,689
24,130
-
295,994
259,024
116,708
574,194
7,005
170,078
1,482,822
Unrestricted funds
African Member Health Insurance
CHARIS II Project
African Member Support
Designated funds
COVID-19 Assistance
Contingency Fund
International Capital Property
OFM / AIM Stories Grant
Vision 20/20 Funds
AIM West Africa Fund		 Resources
expended
£
(67,857)
(332,410)
(400,267)
Incoming
resources
£
572
-
48,115
-
-
-
-
-
-
48,687		 Transfers
in / (out)
£
-
-
-
Resources
expended
£
(775)
(22,944)
-
(8,949)
-
(13,179)
-
(2,366)
(19,644)
(67,857)		 Gains /
(losses)
£
-
(159,046)
(159,046)
Transfers
in / (out)
£
-
(1,186)
-
-
-
(103,529)
-
-
104,715
-		 Carried
forward
£
1,463,652
930,167
2,393,819
Carried
forward
£
35,486
-
48,115
287,045
259,024
-
574,194
4,639
255,149
1,463,652

AFRICA SERVICES INTERNATIONAL (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2022

12. Analysis of movements in unrestricted funds (continued)

Designated fund transfers during the year ended 31 December 2022 comprised the following:

Year ended 31 December 2021:

Designated funds
General fund
Unrestricted funds		 Brought
forward
£
1,404,292
742,819
2,147,111		 Incoming
resources
£
2,893
465,964
468,857		 Resources
expended
£
(77,292)
(266,434)
(343,726)		 Transfers
in / (out)
£
152,929
(140,000)
12,929		 Gains /
(losses)
£
-
187,967
187,967		 Carried
forward
£
1,482,822
990,316
2,473,138

Designated funds comprise the following:

COVID-19 Assistance
International Capital Property
OFM / AIM Stories Grant
Vision 20/20 Funds
Designated funds
African Member Health Insurance
African Member Support
CHARIS II Project
Contingency Fund		 Brought
forward
£
37,394
39,814
165,854
259,024
116,708
574,194
4,722
206,582
1,404,292		 Incoming
resources
£
-
-
-
-
-
-
2,283
610
2,893		 Resources
expended
£
(1,705)
(28,613)
(9,860)
-
-
-
-
(37,114)
(77,292)		 Transfers
in / (out)
£
-
12,929
140,000
-
-
-
-
-
152,929		 Carried
forward
£
35,689
24,130
295,994
259,024
116,708
574,194
7,005
170,078
1,482,822

Designated fund transfers during the year ended 31 December 2021 comprised the following:

AFRICA SERVICES INTERNATIONAL (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2022

12. Analysis of movements in unrestricted funds (continued)

Description of designated funds

13. Analysis of net assets between funds

Intangible assets
Tangible assets
Investments
Debtors
Cash at bank and in hand
Creditors due within one year		 Restricted Unrestricted
funds
funds
£
£
-
168,520
-
574,194
-
1,376,181
-
72,790
221,712
246,202
-
(44,068)
221,712
2,393,819		 2022
£
168,520
574,194
1,376,181
72,790
467,914
(44,068)
2,615,531		 2021
£
134,833
575,597
1,388,270
55,589
558,772
(39,971)
2,673,090

14. Related parties and co-operation with other organisations

Mobilising Organisations

The Charity is connected with the Mobilising Organisations that form the member body of AIM International. There are currently seven Mobilising Organisations: Asia-Pacific, South America, Canada, Europe, South Africa, Korea and the USA.

Amongst other activities, Mobilising Organisations are responsible for collecting and then distributing member allocations to ASI that usually comprises the majority of the Charity's annual income as recorded in the Statement of Financial Activities.

AFRICA SERVICES INTERNATIONAL (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2022

14. Related parties and co-operation with other organisations (continued)

Receiving Organisations

The Charity is also connected with the Receiving Organisations that form the member body of AIM International. These organisations, usually registered in their country of operation as an NGO, comprise regional offices as follows: Central Region in Kampala, Uganda, Eastern and Northern Regions in Nairobi, Kenya, Southern Region in Johannesburg, South Africa and the Diaspora Region in California, USA. In addition to these regional offices AIM International also has training and support service offices located in Nairobi, Kenya. Most of the charitable activity undertaken by ASI is facilitated in cooperation with this network of regional offices.

15. Pension commitments

The Charity makes defined pension contributions on behalf of eligible employees. The assets of the scheme are administered by an independent pensions provider. Pension payments, recognised as charitable expenditure within support costs during the year amounted to £9,354 (2021: £8,982).

16. Analysis of changes in net debt

Cash and cash equivalents
Cash
Borrowings
Debt
Total		 At 1
January
2022
£
558,772
-
558,772		 Cash
flows
£
(132,641)
-
(132,641)		 Foreign
exchange
movements
£
41,783
-
41,783		 At 31
December
2022
£
467,914
-
467,914