## **GLOBAL LEADERSHIP NETWORK UK** (A Company Limited by Guarantee) COMPANY NUMBER 3057781 REGISTERED CHARITY NUMBER 1069726 _**2020**_ ## **UNAUDITED FINANCIAL STATEMENTS** _**For the year ended 31 December 2020**_ **GLOBAL LEADERSHIP NETWORK UK** ## **LEGAL AND ADMINISTRATIVE DETAILS** |**LEGAL & ADMINISTRATIVE DETAILS**
**3**| |---| |**REPORT OF THE COUNCIL OF MANAGEMENT**
**4**| |**STAFFING ..................................................................................................................................... 4**| |**RISKMANAGEMENT....................................................................................................................... 4**| |**OBJECTIVESANDACTIVITIES ......................................................................................................... 4**| |**_a) Membership ........................................................................................................................ 5_**| |**_b) Training ..............................................................................................................................._5 **| |**ACHIEVEMENTSANDPERFORMANCE ............................................................................................. 5**| |**_a) Membership ........................................................................................................................ 5_**| |**_b) Training ..............................................................................................................................._5 **| |**_c) Resources ..........................................................................................................................._6 **| |**RESERVESPOLICY ........................................................................................................................ 6**| |**RESULTSFORTHEYEAR ............................................................................................................... 6**| |**FUTUREPLANS ............................................................................................................................. 6**| |**THECOUNCILOF MANAGEMENTMEMBERS’ RESPONSIBILITIES ....................................................... 8**| |**INDEPENDENT EXAMINERS' REPORT**
**9**| |**STATEMENT OF FINANCIAL ACTIVITIES**
**10**| |**BALANCE SHEET AS AT 31 December 2020**
**11**| |**NOTES TO THE FINANCIAL STATEMENTS**
**12**| |**1. ACCOUNTING POLICIES ..................................................................................................................... 12**| |**2. LEGAL FORM AND OTHER INFORMATION ........................................................................................ 15**| |**3. OUTSIDE SOURCES ….......................................................................................................................... 15**| |**4. DONATIONS AND LEGACIES ............................................................................................................... 15**| |**5. CHARITABLE ACTIVITIES INCOME ..................................................................................................... 15**| |**6. INVESTMENT INCOME .......................................................................................................................... 16**| |**7. OTHER INCOME .................................................................................................................................... 16**| |**8. CHARITABLE ACTIVITIES EXPENDITURE .......................................................................................... 16**| |**9. OTHER EXPENDITURE ......................................................................................................................... 16**| |**10. SUPPORT COSTS ............................................................................................................................... 17**| |**11. NET MOVEMENT IN FUNDS ............................................................................................................... 17**| |**12. STAFF COSTS ..................................................................................................................................... 17**| |**13. COMMITMENTS UNDER OPERATING LEASES …............................................................................ 18**| |**14. TANGIBLE ASSETS ............................................................................................................................ 18**| |**15. STOCKS ............................................................................................................................................... 18**| |**16. DEBTORS ............................................................................................................................................ 18**| |**17. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR ........................................................... 18**| |**18. RELATED PARTY TRANSACTIONS ................................................................................................... 18**| |**19. DEFERRED INCOME ........................................................................................................................... 19**| |**20. RESTRICTED FUNDS .......................................................................................................................... 19**| |**21. UNRESTRICTED FUNDS ..................................................................................................................... 19**| P a g e | **2** **GLOBAL LEADERSHIP NETWORK UK** ## **LEGAL AND ADMINISTRATIVE DETAILS** |**Charity Name:**|Global Leadership Network UK| |---|---| |**Registered Charity Number**:|1069726| |**Company Number:**|03057781| |**Principal Address:**|Mount Pleasant Chapel Bristol Road| ||Falfield| ||Wotton-Under-Edge| ||England| ||GL12 8DW| |**Registered Office**|16-20 South Street| ||Hythe| ||Southampton| ||SO45 6EB| |**The Council of Management:**|Mr Scott Cochrane (Appointed 8 December 2020)| ||Mr Gary Schwammlein| ||Mr Michael Hill (Resigned 15 May 2020)| ||Mr Roger Fairhead (Resigned 1 December 2020)| ||Mr Steven Smith (Appointed 13 February 2020)| ||Mr Mark Faithfull (Appointed 11 August 2020)| ||Mrs Helen Reed (Appointed 6 November 2020)| ||Mr Andrew Worthington (Appointed 6 November 2020)| |**Company Secretary:**|Mr William Salmon (Resigned 1 July 2020)| ||Mrs Rachael Cottell (Appointed 1 July 2020)| |**Executive Director:**|Mr William Salmon (Resigned 1 February 2019)| ||Appointed Communications & Marketing Manager| |**Chief Executive Officer:**|Mr Michael Hill (Resigned as CEO on 1stDecember)| ||Mr Roger Fairhead (Resigned as a Director on 1 December 2020)| ||Appointed CEO on 1 December 2020| |**Bankers:**|Barclays Bank PLC| ||425-427 Shirley Road| ||Shirley| ||Southampton| ||SO15 3EU| |**Independent Examiner:**|Graham Jones BSc FCA| ||Graham Jones LLP| ||16-20 South Street| ||Hythe| ||Southampton| ||SO45 6EB| P a g e | **3** **GLOBAL LEADERSHIP NETWORK UK** ## **REPORT OF THE COUNCIL OF MANAGEMENT** The Council of Management presents its report and the Financial Statements of the company for the year ended 31 December 2020 in accordance with the Statement of Recommended Practice: ‘Accounting by Charities’ (SORP). ## **STRUCTURE, GOVERNANCE AND MANAGEMENT** Global Leadership Network UK (“ GLN UK ”) is a registered charity and is a registered company limited by guarantee. The company is governed by its memorandum and articles of association dated 17[th] May 1995. GLN UK is an affiliate of Global Leadership Network (GLN US) based in South Barrington, IL, USA under the terms and conditions of the Willow Creek Association Affiliation Agreement dated 15[th] March 2000 (“the Affiliation Agreement”) . ## **Staffing** In accordance with the Affiliation Agreement, GLN UK is governed by The Council of Management (which is the Board of Directors for the purposes of company law and Board of Trustees for the purposes of Charity Law) consisting of a minimum of five members. Each member of the Council is a member of GLN UK or aligned with its purposes. Recruitment of new Council members is subject to election by The Council of Management. Induction and training of new Council members is undertaken by the Chairman of The Council of Management and the Chief Executive. Review of each Council member’s role and contribution is undertaken bi-annually by the Chairman and the Chief Executive. Review of the Chairman’s role and contribution is undertaken bi -annually by the GLN International Vice President. The Council of Management is responsible for policy and strategic direction. The operational and staff management is the responsibility of the CEO, Roger Fairhead from 1 December 2020 and prior to this was the responsibility of Mike Hill. The day-to-day administration rests with Rachael Cottell who is also the Company Secretary (from 1 July 2020). Volunteers play a vital role in fulfilling the company’s objectives and activities. The volunteer roles vary from administrative support in the GLN UK office to Event management at GLN UK conference venues. ## **Risk Management** The Council of Management continues to monitor activity on a regular basis using a range of management tools (a “Scorecard” identifying key performance areas is circulated each month and presented at The Council of Management meetings) to identify potential areas of risk. This is constantly reviewed and updated. GLN US, in addition to quarterly reports, requires quarterly budgets and annual goal setting. The Risk Assessment Report covers the necessary contingencies. ## **OBJECTIVES AND ACTIVITIES** The purpose of the company is the advancement of the Christian faith by the envisioning, encouraging, and equipping of church leaders. This is achieved by partnering with local churches to provide GLN leadership development training at conferences and seminars. In addition, it provides year-round training materials through membership subscriptions, Internet media and the sale of resources. P a g e | **4** **GLOBAL LEADERSHIP NETWORK UK** ## **REPORT OF THE COUNCIL OF MANAGEMENT** We have referred to the Charity Commission’s general guidance on public benefit when reviewing our aims and objectives and in planning our future activities. In particular the Council of Management considers how planned activities will contribute to the aims and objectives they have set. ## **Training** Training provides an effective means through which GLN UK achieves its vision and mission. GLN UK has a strategic goal to provide quality conferences and seminars. Invariably this takes the form of at least one, and usually several major 1-day events which provide a high inspiration factor and fulfil the ‘envision, encourage, equip’ objective. In addition, GLN UK provides internet training programmes using video and audio resources from the live events. The administration of the training is undertaken primarily by the GLN UK staff and also a team of volunteers who assist with the preparation of mail shots, signage, resources, packaging and other tasks entailed in the running of such big events. In 2020, GLN UK set out to provide: - At least one major 1-day leadership video conferences online – attendance goal 3000 - one major 2-day leadership conference, which took place in Chicago – complimentary online attendance only, no income realised - one major 5-day Church Leadership Intensive, which took place in Chicago – attendance 17 (Cancelled due to COVID) ## **Membership** To achieve the vision and mission, GLN UK provides a Membership service (referred to as a Partnership), with a range of benefits, delivered by staff focused on meeting their needs. The benefits include a complementary ticket to the Global Leadership Summit (“GLS”) videocast, access to online learning programmes, and a monthly mailing with a leadership audio resource. In addition, members receive regular email promotional offers on GLN resources and events as well as latest updates. In turn, members can inform GLN UK of their own notices e.g. job vacancies which are posted on our website and social media. GLN UK members are contacted by the Communications and Marketing Manager to provide feedback and influence on strategic and operational matters. ## **ACHIEVEMENTS AND PERFORMANCE** 2019 had proved a challenging year for performance, which had ramifications for 2020, which were further exacerbate by the COVID Pandemic. ## **Training** In the UK a set of major 1-day events took place over multiple venues in the UK & Ireland. - GLS – October/November - The 1-day GLS online videocast events brought the top leadership sessions from the US Leadership Summit to the UK - Total attendance: 1625 from 2249 bookings ## **Membership** Membership increased from 116 members in 2019 to 2600 in 2020. P a g e | **5** **GLOBAL LEADERSHIP NETWORK UK** ## **REPORT OF THE COUNCIL OF MANAGEMENT** ## **Resources** Resource sales were non-existent in 2020 due to the nature of the events, all being held online. ## **FINANCIAL REVIEW** ## **Reserves Policy** The aim of The Council of Management is to keep in distributable reserves an amount equivalent to at least six months of operating expenses (in 2020 operating expenses including salaries, rent, office expenses and other overheads totalled £131,703). At 31 December 2020, the company had unrestricted funds available of £163,359 (2019: £254,657), which The Council of Management feels is satisfactory. The Council of Management will continue to review the level of reserves in the light of the Association ’ s ongoing plans and requirements. ## **Public Benefit** The company provides a number of free resources for public benefit. In addition, for a fee, extra resources are made available to individuals and the churches they represent. For low income individuals, GLN UK offers discretionary discounts on its membership, resources, and conference fees. ## **Results for the Year** The company had net outgoing resources of £91,298 for the year ended 31 December 2020 (2019: £46,713). A deficit of £8,341 before support costs arose from the various UK conferences run during the year as noted above. No donations were received for the GLDF in 2020. In 2008 The Council of Management agreed upon a policy of apportioning a tenth of the company’s surplus to third party organisations. Council members nominate the third party organisations such that they are consistent with the objects of the company and there are no conflicts of interest. At 31 December 2020, £11,118 remained to be apportioned. This represents a surplus from previous years less subsequent donations. A loss was made this year of £106,296 in unrestricted funds which means there will be no apportionment from 2020. The balance sheet shows total net assets of £183,745 (201: £275,043), which are held for use by the company in furtherance of its objectives. The Council of Management has a reasonable expectation that the company has adequate resources to continue operational existence for the foreseeable future. For this reason The Council of Management continues to adopt the going concern basis of accounting in preparing the annual financial statements (See note 1 to the financial statements). ## **FUTURE PLANS** GLN UK plans to focus on its core activity of training the GLS. Membership will be maintained and GLS resources made available at events and online. - **Training:** The GLS is the principal thrust behind all our activity. GLN UK plans to provide in 2020: - The GLS 1-day online and in person events, continuing with its desire to make the worldclass training of the Summit ‘annual, accessible and affordable’. > o Online learning on leadership. P a g e | **6** **GLOBAL LEADERSHIP NETWORK UK** ## **REPORT OF THE COUNCIL OF MANAGEMENT** ## • **Membership:** - Membership will continue to provide GLS year-round learning. - The website is also under constant review for optimal performance, user friendliness, and up-to-date information. ## • **Resources:** - We plan to focus on conference related resources online and at our events. P a g e | **7** **GLOBAL LEADERSHIP NETWORK UK** ## **REPORT OF THE COUNCIL OF MANAGEMENT** ## **The Council of Management Members’ Responsibilities** The members of The Council of Management are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations. Company law requires the members of The Council of Management to prepare financial statements for each financial year. Under that law the members have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). The financial statements are required by law to give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to: - select suitable accounting policies and then apply them consistently; - make judgements and estimates that are reasonable and prudent; - state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; - prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. The members of The Council of Management are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the company 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 company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. ## **Small Company Provisions** This report has been prepared in accordance with the special provisions for small companies under Part 15 of the Companies Act 2006. Approved by The Council of Management on 22 September 2021 and signed on its behalf by Mr Mark Faithfull Chairman P a g e | **8** **GLOBAL LEADERSHIP NETWORK UK** ## **INDEPENDENT EXAMINER’S REPOR T** I report on the financial statements of the charity for the year ended 31 December 2020 set out on pages 10 to 19. ## **RESPECTIVE RESPONSIBILITIES OF TRUSTEES AND EXAMINER** The trustees (who are also the directors of the company for the purposes of company law) are responsible for the preparation of the financial statements. The charity's trustees consider that an audit is not required for this year under section 144 of the Charities Act 2011 (the Charities Act) and that an independent examination is needed. The charity's gross income did not exceed £250,000 and I am qualified to undertake the examination by being a qualified member of The Institute of Chartered Accountants in England and Wales. It is my responsibility to: - examine the financial statements under section 145 of the Charities Act; - follow the procedures laid down in the General Directions given by the Charity Commission under section 145(5)(b) of the Charities Act; and - state whether particular matters have come to my attention. ## **BASIS OF INDEPENDENT EXAMINER'S STATEMENT** 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 the 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 r eport is limited to those matters set out in the statement below. ## **INDEPENDENT EXAMINER'S STATEMENT** In connection with my examination, no matter has come to my attention to: - indicate that accounting records have not been kept in accordance with section 386 of the Companies Act 2006; - indicate that the financial statements do not accord with such records; - indicate that the financial statements fail to comply with relevant accounting requirements under section 396 of the Companies Act 2006, or are not consistent with the Charities SORP (FRS102); - which, in my opinion, attention should be drawn to gain a proper understanding of the financial statements. ......................................... Graham Jones BSc FCA Independent Examiner Graham Jones LLP 16-20 South Street Hythe, Southampton SO45 6EB P a g e | **9** ## **GLOBAL LEADERSHIP NETWORK UK** ## **Statement of Financial Activities for the year ended 31 December 2020** |**Note**
**Income and endowments from:**
Donations and legacies
**4**
Charitable activities
**5**
Investment income: Bank interest
**6**
Other income
**7**
Total income resources
**Expenditure on:**
Charitable activities
**8**
Other activities
**9**
**Total Expenditure**
Net income / (expenditure)
for the year
**Net movement in funds**
**11**
**Total funds brought forward**
**Total funds carried forward**|**Unrestricted**
**Funds**
**£**
40,306
12,895
261
686
54,148
141,472
3,974
145,446
(91,298)
(91,298)
**254,657**
**163,359**|**Restricted**
**Funds**
**£**
-
-
-
-
-
-
-
-
-
-
**20,386**
**20,386**|**Total**
**Total**
**Funds**
**Funds**
**2020**
**2019**
**£**
**£**
40,306
11,374
12,895
132,036
261
855
686
3,750
54,148
148,015
141,472
183,756
3,974
10,972
145,445
194,728
(91,298)
(46,713)
(91,298)
(46,713)
**275,043**
**321,756**
**183,745**
**275,043**| |---|---|---|---| **The statement of financial activities includes all gains and losses recognised in the year.** **All incoming resources and resources expended derive from continuing activities.** P a g e | **10** **GLOBAL LEADERSHIP NETWORK UK** ## **Balance Sheet as at 31 December 2020** |**Note**
**Fixed assets**
Tangible assets
**14**
**Current assets**
Stocks
**15**
Debtors
**16**
Cash at bank and in hand
Total current assets
**Creditors: amounts falling due within one year**
**17**
**Net current assets**
**Total assets less current liabilities**
**Total net assets**
**The funds of the charity**
Restricted income funds
**20**
Unrestricted funds
**21**
**Total charity funds**|**£**
**£**
**£**
**£**
-
-
4,242
4,499
8,461
28,376
180,799
282,350
193,502
315,225
9,757
40,182
183,745
275,043
183,745
275,043
183,745
275,043
20,386
20,386
163,359
254,657
**183,745**
**275,043**
**2020**
**2019**|**£**
**£**
**£**
**£**
-
-
4,242
4,499
8,461
28,376
180,799
282,350
193,502
315,225
9,757
40,182
183,745
275,043
183,745
275,043
183,745
275,043
20,386
20,386
163,359
254,657
**183,745**
**275,043**
**2020**
**2019**| |---|---|---| |||275,043| |||20,386
254,657| |||**275,043**| For the year ended 31st December 2020 the company was entitled to exemption under subsection 1 of section 477 of the Companies Act 2006. These financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006. Director's responsibilities: - - . The Members have not required the company to obtain an audit of its accounts for the year in question in accordance with section 476. - The directors acknowledge their responsibility for complying with the requirements of the Act with respect to account records and preparation of accounts. Approved by The Council of Management on 22 September 2021 and signed on its behalf by: Mr Mark Faithfull _Chairman_ Company Registration Number: 3057781 P a g e | **11** **GLOBAL LEADERSHIP NETWORK UK** ## **Notes forming part of the financial statements for the year ended 31 December 2020** ## **1. Accounting policies** The financial statements have been prepared in accordance with FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" ("FRS 102"), "Accounting and Reporting by Charities" the Statement of Recommended Practice for charities applying FRS 102 ("the SORP"), the Companies Act 2006 and UK Generally Accepted Accounting Practice as it applies from 1 January 2015. The charity is a Public Benefit Entity as defined by FRS 102. The charity has taken advantage of the provisions in the SORP for charities applying FRS 102 Update Bulletin 1 not to prepare a Statement of Cash Flows. The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts 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. ## **Going concern** The Council of Management has a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. For this reason The Council of Management continues to adopt the going concern basis of accounting in preparing the annual financial statements. However, because the bulk of the charity's income tends to come during 'conference season' in Autumn of each year, if the 2021 conference season fails to generate sufficient income, then the Council of Management may need to take action to reduce the overheads of the organisation. To mitigate this risk GLN is working to promote a membership option in 2021 which offers year-round learning, and will seek to raise additional funds through donations. The Council of Management believes that a combination of memberships, additional donations and further reductions in overheads where necessary will provide the company with sufficient resources to meet its obligations for at least the next 12 months. ## **Funds structure** Unrestricted funds are available for use at the discretion of the Trustees in furtherance of the general objectives of the Charity. Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the Charity for specific purposes. The aim and use of each restricted fund is set out in the notes to the financial statements. ## **Incoming resources** ## **Recognition of incoming resources** - These are included in the Statement of Financial Activities (SoFA) when: - the charity becomes entitled to the resources; - the trustees are virtually certain they will receive the resources; and - the monetary value can be measured with sufficient reliability. ## **Incoming resources with related expenditure** Where incoming resources have related expenditure (as with fundraising or contract income) the incoming resources and related expenditure are reported gross in the SoFA. ## **Grants and donations** Grants and donations are only included in the SoFA when the charity has unconditional entitlement to the resources. ## **Tax reclaims on donations and gifts** Incoming resources from tax reclaims are included in the SoFA at the same time as the gift to which they relate. ## **Membership subscription income** This represents the apportionment of subscriptions appropriate to the year of account. P a g e | **12** **GLOBAL LEADERSHIP NETWORK UK** **Notes forming part of the financial statements for the year ended 31 December 2020** ## **Contractual income and performance related grants** This is only included in the SoFA once the related goods or services have been delivered. ## **Gifts in kind** Gifts in kind are accounted for at a reasonable estimate of their value to the charity or the amount actually realised. Gifts in kind for use by the charity are included in the SoFA as incoming resources when receivable. ## **Donated services and facilities** These are only included in incoming resources (with an equivalent amount in resources expended) where the benefit to the charity is reasonably quantifiable, measurable and material. The value placed on these resources is the estimated value to the charity of the service or facility received. ## **Volunteer help** The value of any voluntary help received is not included in the accounts but is described in the trustees’ annual report. ## **Investment income** This is included in the accounts when receivable. ## **Expenditure** ## **Liability recognition** Liabilities are recognised as soon as there is a legal or constructive obligation committing the charity to pay out resources. ## **Governance costs** Include costs of the preparation and examination of statutory accounts, the costs of trustee meetings and cost of any legal advice to trustees on governance or constitutional matters. ## **Support costs** Support costs include central functions and have been allocated to activity cost categories in proportion to the time spent by individual members of staff and with reference to the salaries of those staff. ## **Foreign currency translation** Transactions denominated in foreign currencies are translated into sterling and recorded at the rate of exchange ruling at the date of the transaction. Balances at the year-end denominated in a foreign currency are translated into sterling at the rate of exchange ruling at the balance sheet date. Exchange differences are taken into account in arriving at the net incoming resources. ## **Redundancy or termination payments** Redundancy or termination payments are charged to the Statement of Financial Activities in the financial period in which the redundancy takes place. ## **Fixed assets and depreciation** Expenditure on fixed assets costing over £500 is capitalised at cost and depreciated over the anticipated useful life of the assets as follows: Office Equipment: - over a period of three years on a straight line basis. Computer Systems: - over a period of three years on a straight line basis. ## **Stocks** Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolescence. ## **Debtors** Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business. P a g e | **13** **GLOBAL LEADERSHIP NETWORK UK** ## **Notes forming part of the financial statements for the year ended 31 December 2020** ## **Debtors continued** Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables. ## **Operating leases** Rentals payable under operating leases are charged to the Statement of Financial Activities over the period of the lease on a straight line basis. ## **Pension scheme** The Charity operates a money purchase pension scheme. Pension costs are charged to the SoFA in the financial period in which they are incurred. ## **Financial instruments** The charity has elected to apply the provisions of Section 11 'Basic Financial Instruments' 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 instruments** 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. ## _**Impairment of financial assets**_ Financial assets, other than those held at fair value through income and expenditure, are assessed for indicators of impairment at each reporting date. Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset's original effective interest rate. The impairment loss is recognised in net income/(expenditure) for the year. If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in net income/(expenditure) for the year. ## _**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 payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised. Debt instruments are subsequently carried at amortised cost, using the effective interest rate method. 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 measure at amortised cost using the effective interest method _**.**_ P a g e | **14** **GLOBAL LEADERSHIP NETWORK UK** **Notes forming part of the financial statements for the year ended 31 December 2020** ## **2. Legal Form and Other Information** Global Leadership Network UK is a Company Limited by Guarantee incorporated in England and Wales. ## **3. Outside sources** We estimate that we have on average <1% (2019: 1.9%) turnover from our incoming resources attributable to geographical markets outside the United Kingdom. |**4. Donations and legacies**
UK donation
Restricted GLS appeal
**5. Charitable Activities Income**
Membership fees
Membership Dues Church & Indiv.
UK Conferences
GLS
US Conferences
USA Conferences
Resources
Team edition sales|**Unrestricted**
**Funds**
**£**
40,306
-
40,306
**Unrestricted**
**Funds**
**£**
6,801
6,801
1,165
1,165
-
4,929
4,929|**Restricted**
**Funds**
**£**
-
-
-
**Restricted**
**Funds**
**£**
-
-
-
-
-
-
-|**Total**
**Total**
**Funds**
**Funds**
**2020**
**2019**
**£**
**£**
40,306
1,308
-
10,066
40,306
11,374
**Total**
**Total**
**Funds**
**Funds**
**2020**
**2019**
**£**
**£**
6,801
8,763
6,801
8,763
1,165
89,783
1,165
89,783
-
14,864
4,929
18,625
4,929
18,626| |---|---|---|---| P a g e | **15** **GLOBAL LEADERSHIP NETWORK UK** ## **Notes forming part of the financial statements for the year ended 31 December 2020** |**Unrestricted**
**Funds**
**Note**
**£**
**6. Investment Income**
Interest income
261
**7. Other Income**
Advertising/Exhibition stands
-
Foreign exchange differences
686
686
**8. Charitable Activities Expenditure**
Members' services
Marketing
-
Member benefits
-
Support costs
10
31,701
31,701
UK Conferences
Venue hire and expenses
-
Other conference Expenses
9,506
Support costs
10
91,021
100,528
US Conferences
Conference expenses
-
Support costs
10
-
-
Resources
Cost of sales
262
Support costs
10
8,981
9,243
**9. Other Expenditure**
Independent examiner's fees
-
Trustee's expenses
3,974
Foreign exchange differences
-
3,974|**Restricted**
**Funds**
**£**
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-|**Total**
**Funds**
**Funds**
**2020**
**2019**
**£**
**£**
261
855
-
3,750
686
-
686
3,750
-
508
-
241
31,701
24,991
31,701
25,740
-
8,745
9,506
35,450
91,021
73,722
100,528
117,917
-
6,175
-
10,309
-
16,484
262
8,735
8,981
14,880
9,243
23,615
-
3,812
3,974
6,560
-
600
3,974
10,972
P a g e|**16**| |---|---|---| ## **GLOBAL LEADERSHIP NETWORK UK** ## **Notes forming part of the financial statements for the year ended 31 December 2020** ||||**2020**|**2019**| |---|---|---|---|---| ||||**£**|**£**| |**10. **|**Support Costs**|||| ||Total support costs are as follows:|||| ||Payroll costs||97,005|84,564| ||Office accommodation||12,866|20,961| ||Stationery & office supplies||9,586|13,137| ||Travelling & subsistence||1,954|720| ||Professional Fees inc. Bank charges||10,292|4,520| ||||131,703|123,902| ||Support costs are allocated as follows:|**Note**||| ||Members' services|8|31,701|24,991| ||UK Conferences|8|91,021|73,722| ||US Conferences|8|-|10,309| ||Resources|8|8,981|14,880| ||||131,703|123,902| |**11. **|**Net movement in funds**|||| ||Net movement in funds is stated after charging:|||| ||Independent examiner's fees||-|3,812| ||Accountancy fees||7,942|3,674| ||Office rent||12,866|19,984| ||Foreign exchange differences||-|600| ||The Council of Management (Trustees') expenses:|||| ||Travel & subsistence for 3 Trustees||3,974|6,560| ||||24,782|34,630| ||The members of The Council of Management (Trustees) received no remuneration as trustees in either|||accounting| ||period.|||| |**12. **|**Staff costs**|||| ||Salaries||89,451|49,466| ||Pension contributions||2,690|2,375| ||Health insurance||374|857| ||Social security costs||4,490|2,008| ||**Payroll sub-total**||97,005|54,706| ||Contracted out staffing services||-|29,858| ||**Total**||97,005|84,564| ||Average number of employees:|||| ||Administration||1|1| ||Direct charitable activities||1|1| ||Operational support||1|-| No employee was paid emoluments in excess of £60,000 in either year P a g e | **17** **GLOBAL LEADERSHIP NETWORK UK** **Notes forming part of the financial statements for the year ended 31 December 2020** ## **13. Commitments Under Operating Leases** At 31 December 2020 the company had annual commitments under non-cancellable operating leases as set out below: |**2020**
**£**
Equipment
Operating leases which expire:
Less than one year
-
**14. Tangible Assets**
**Fixtures, fittings**
**and equipment**
**£**
Cost
At 1 January 2020 and 31 December 2020
27,919
Depreciation
At 1 January 2020 and 31 December 2020
27,919
Net Book value
At 31 December 2020 and 2019
-
**2020**
**£**
**15. Stocks**
Stock
4,242
**16. Debtors**
Trade debtors
8,461
Other debtors
-
8,461
**17. Creditors: Amounts Falling Due Within One Year**
Trade creditors
4,275
Deferred income
3,900
Taxation and social security costs
-
Accruals
1,470
Other creditors
112
9,757|**2019**
**£**
2,574| |---|---| ||**Total**
**£**| ||27,919| ||| ||27,919| ||| ||-| ||**2019**
**£**
4,499| ||19,700
8,676| ||28,376| ||11,943
21,764
1,412
5,306
(243)| ||40,182| ## **18. Related Party Transactions** During the year there were financial transactions with affiliated organisations as follows: The company made no purchases of goods and services from Global Leadership Network (GLN US) (2019: £13,471) on a normal commercial basis. At the balance sheet date, there was nothing owed to GLN US (2019: £0). P a g e | **18** **GLOBAL LEADERSHIP NETWORK UK** ## **Notes forming part of the financial statements for the year ended 31 December 2020** ## **19. Deferred Income** |As at 31 December 2019
As at 31 December 2020
Movement on Deferred income account
Incoming resources deferred in current year
less amounts released from previous years|**£**
21,764
3,900| |---|---| ||(17,864)| ||3,900
21,764| ||(17,864)| Deferred income represents monies received in respect of memberships relating to future periods, in respect of future conferences and in respect of future donations. ## **20. Restricted Funds** Restricted funds represents monies collected at the “Global Leadership Summit” events to promote the work of the GLN US in the developing world. During the year, £0 was collected, and the balance of £0 was remitted on behalf of GLN UK to be used in this manner, leaving £20,368 carried forward in restricted funds which will also be sent to organisations during the current year. |GLS|**Opening**
**Closing**
**Balance**
**Income**
**Expenditure**
**Balance**
**£**
**£**
**£**
**£**
20,386
-
-
20,386| |---|---| ||20,386
-
-
20,386| ## **21. Unrestricted Funds** Unrestricted funds are those funds that the trustees are free to use in accordance with the charitable objects, and amount to £163,359 at the end of 2020. In 2008 The Council of Management agreed upon a policy of apportioning a tenth of the company’s surplus to third party organisations. Council members nominate the third party organisations such that they are consistent with the objects of the company and there are no conflicts of interest. At 31 December 2020, £11,118 remained to be apportioned. This represents a surplus from previous years less subsequent donations. A loss was made this year of £91,298 in unrestricted funds so there will be no transfer from 2020. The balance of unrestricted funds is held within the General Fund. Movements on unrestricted funds are as follows:- |Designated Fund
General Funds|**Opening**
**Closing**
**Balance**
**Income**
**Expenditure**
**Transfers**
**Balance**
**£**
**£**
**£**
**£**
**£**
11,118
-
-
-
11,118
243,539
54,148
(145,446)
-
152,241| |---|---| ||254,657
54,148
(145,446)
-
163,359| P a g e | 19