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2021-12-31-accounts

Charity registration number 1071823

Company registration number 03631207 (England and Wales)

EUROPEAN MISSIONARY FELLOWSHIP

ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2021

EUROPEAN MISSIONARY FELLOWSHIP

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees

Rev G.N. Burke Mr S.M. Gay Rev D.M. Grimwade Mr G Hilton Rev P.B. Jones Rev D.L. Moore Mr N D Pountney Rev S. Quinton Rev A W J Stevens Rev M R Thomas Rev S. Bowers Mr L Coates

(Appointed 26 April 2021) (Appointed 1 November 2021) (Appointed 1 November 2021)

Mission director Mr A. Birch Secretary Mr G Brienza Charity number 1071823 Company number 03631207 Registered office The Old Rectory and principal address Main Street Glenfield Leicester LE3 8DG

Independent examiner

Philip John Dymond FCCA Cheyettes Ltd 167 London Road Leicester LE2 1EG

EUROPEAN MISSIONARY FELLOWSHIP

CONTENTS

Page
Trustees' report 1 - 5
Independent examiner's report 6
Statement of financial activities 7
Balance sheet 8
Statement of cash flows 9
Notes to the financial statements 10 - 23

EUROPEAN MISSIONARY FELLOWSHIP

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

The trustees present their report and financial statements of the European Missionary Fellowship (EMF) for the year ended 31 December 2021.

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

Objectives and activities

The primary objective of EMF is to promote the Gospel of the Lord Jesus Christ to the people of Europe and to do so in co-operation with all other evangelical Christians and the Evangelical Christian churches who agree with the doctrinal statement of EMF. This is accomplished by providing financial resources, together with spiritual counsel and support to men and women who know themselves to have been called by God for the proclamation of the Gospel of Jesus Christ. In so doing, the second objective of EMF is accomplished which is to advance the Christian religion for the benefit of the public and in accordance with the doctrinal statement of EMF through the holding of prayer meetings, training, lectures, producing and/or distributing literature on the Christian faith to enlighten others about the Christian religion.

It is envisaged that financial support will ideally be temporary in nature and that churches established through the preaching of the gospel will in due time adopt the financial needs of men and women previously supported through EMF. This charity is therefore an agency sourcing funds largely from churches and individuals within the United Kingdom, providing support to missionary members of EMF preaching on the continent of Europe. Being self-employed or employed by churches, these people initially receive financial donations and spiritual support from EMF, but in time it is expected that this will be replaced by support from local churches established through the preaching of the gospel.

EMF is also involved in three additional, though related, areas of activity:

  1. Financial support is occasionally provided on an individual project basis to assist in the construction of buildings to house indigenous national evangelical churches; on occasion we also assist in the rent or purchase of accommodation for missionaries.

  2. Funds are provided for the translation, publication and distribution of Christian literature in Europe. In November 2021 a Literature fund was established expressly for this purpose. In accordance with EMF's objectives, a significant proportion of resources is expended by way of grants and is subsequently divided into missionary support, the cost of church building work, and the cost of publishing Christian literature overseas. The grant-making policy of EMF is to continue to support the work of promoting the Christian religion in accordance with the charity's objectives subject to any restrictions imposed by the original donor of the funds.

  3. EMF is still committed to support ing training and has established a Training Fund to support potential studies in ministry training – particularly, though not exclusively, for a two-year course through London Seminary. The policies and administration of this Fund have been further defined in 202 1 . The Fund has continued to perform well financially through 202 1 , and through the year 6 students were supported in their trainin g .

This year, EMF paid grants in furtherance of the charity's objectives amounting to £ 443 , 987 (compared to £ 437 , 002 in the previous year). The charity benefits from the voluntary services of a number of helpers and in many ways. For example, during 20 21 voluntary services were received particularly in relation to the preparation of Vision for Europe magazine, and in assistance with administrative duties . Many individuals and churches throughout the UK voluntarily assist the missionary deputation programme by organising meetings and conferences and providing hospitality and transport. Voluntary help is also provided to publicise the work of EMF in Australia.

The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charitable company should undertake.

EUROPEAN MISSIONARY FELLOWSHIP

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

Achievements and performance

The Executive Committee plays a crucial role in overseeing the work and met for its regular quarterly meetings. It was supported and informed by the working Business Sub Committee and the Training Fund Sub Committee .

Three new T rustee s were introduced to the Executive during 2021.

Missionary support

At the end of 202 1 a total of 8 8 missionaries in 1 6 countries were in fellowship with EMF. Thirteen new missionaries were introduced into EMF in 202 1 , seven missionaries retired, one resigned and one passed away .

Details of those bodies and individuals who received financial support are available on request from the mission office. Throughout 202 1 support for these missionaries has been maintained . We continue to work towards churches taking more responsibility for the support of missionaries. The continuing economic pressures in many of the countries we work with have meant that progress in this is slow .

Significant changes were made during 202 1 to the way in which the financial needs of supported missionaries were assessed and EMF allowances reviewed, leading to a number of adjustments in missionary allowances.

The Letter of Appointment , introduced in 2020, was revised to include a statement of the 3-way obligations between EMF, the missionaries and the churches in which the missionaries serve .

With the continuing COVID-19 pandemic, a high proportion of EMF missionaries have been directly affected by the pandemic, along with a significant impact on their churches and on their activities. EMF has provided pastoral support for its missionary family in various ways, both individually and collectively .

Church and Supporter Engagement

The restrictions arising from the COVID-19 pandemic have had a major effect on the way in which EMF has engaged with its support base in 202 1 . All missionary deputations in the spring of 2021 were cancelled along with planned conferences. The easing of COVID-19 restrictions later in the year allowed for the recommencement of in-person deputation work and conferences in the autumn. Regular online webinars with strong content and good attendance continued throughout 2021 and are becoming a regular feature of engagement with the EMF support bas e .

Support for the work of the mission, whether in financial terms, or in prayerful interest, increased during 202 1 , which can be attributed at least in part to these efforts to engage in new ways with the support base .

Literature work

We continue to contribute to this work in Spain with Editorial Peregrino and in Poland with Legatio. We support the missionaries who manage the work, subject to the continuing activities of the publishing houses being acceptable to EMF. The establishment of the Literature Fund in November 2021 will allow for direct support towards covering the costs of publishing new titles.

Training for Mission Work

In 202 1 , the Training Fund Sub Committee continued to make significant improvements to the policies and processes of the mission with respect to the use of the fund, to the selection of appropriate training institutions to be used, and to the selection of candidates for training. Six new students were supported, fully or partially, for training, four of whom were attending London Seminary, the other two at Bible colleges in their own countries .

EUROPEAN MISSIONARY FELLOWSHIP

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

Outreach projects

Donations amounting to £4,521 were made to an evangelistic outreach work in Almuñécar, Spain, called ‘Happy Christmas Almuñécar’. This was as a result of a Christmas Project appeal . Donations amounting to £3,500 were also made to the 'Athens Media Studio' project, to assist with the production of videos promoting the Christian gospel message in Greece .

Church building projects

Donations amounting to £670 were made to a building project in Poland. We continue to aid some churches with rental payments for their buildings .

Financial review

Total incoming resources received during 20 21 were £ 942,117 , this was 1.19 % higher than the previous year's income (£ 931,581 ). Included within these incoming resources were restricted funds amounting to £ 272,041 . Incoming general and designated funds increas ed by 8.76 % to £ 670,076 . Legacies received amounted to £249,001 . During the reporting period, total expenditure amounted to £ 711,303 (compared with the previous year of £7 12 , 502 ). This level of expenditure included use of restricted funds amounting to £ 411,967 . Expenditure from general and designated funds was therefore £ 299,336 .

The trustees consider that EMF has adequate resources to fulfil its immediate future obligations. We continue to seek to control expenditure where possible without jeopardising EMF's ability to fulfil its aims and objectives. The work of supporting missionaries is regarded as a long-term commitment and further fundraising will be needed to finance activities for the longer term. This is being addressed primarily through the deputation programme, attendance at conferences, the distribution of news updates and publicity and the preparation of new publicity material , although in 2021 a significant proportion of this has been through online engagement .

The trustees have established a general reserves policy to ensure that EMF can maximise the programme impact for beneficiaries and maximise the value of net income. General reserves provide some protection to the organisation and charitable programme, and provide time to adjust to changing financial circumstances. This limits the risk to the programme in the event of a downturn in some of EMF's various sources of income or an unexpected need for additional expenditure. This policy also provides parameters for future strategic plans, contributes towards decision making, and influences EMF's ways of working. EMF aims to keep in reserve funds representing approximately six months of total expenditure.

As shown in the notes to the financial statements, after excluding amounts retained in fixed assets, EMF had free unrestricted reserves of £ 3,136,062 at 31st December 20 21 and provides EMF with sufficient comfort to enable the continuance of its activities. EMF's investment objective is to maximise the return on its investment funds while maintaining maximum security and a high degree of liquidity to allow a rapid response to urgent needs as they occur. To meet this objective, the EMF continues to hold its deposits in current and savings accounts. The Training Fund investment established in 2019 continued to perform well over the year, despite the significant downturn in financial markets .

The principal sources of funds for the work of EMF are the gifts of supporting churches and individuals. Legacies form an important but unpredictable additional source of income. It remains an objective of the Trustees to close the gap between income from donations and expenditure. The global economic situation continues to affect EMF's financial position, particularly through rising costs but also the reduced value of the pound against other European currencies adding to the costs of overseas donations. The decision to leave the European Union made in June 2016 has had considerable effect due to the impact on Pound to Euro exchange rates although these rates, once again, have continued to improve.

The trustees have assessed the major risks to which the charitable company is exposed, and are satisfied that systems are in place to mitigate exposure to the major risks.

EUROPEAN MISSIONARY FELLOWSHIP

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

Plans for the future

With respect to the oversight of EMF, there are no current plans to increase the number of Trustees. However, with regards to staff, consideration is being given as to whether to employ an EMF representative for Scotland.

Having moved to managed office accommodation in Leicester in 2019, this arrangement has been found to suit the work of the mission well and it is not planned to make further significant changes. However, a review of whether two separate offices within that accommodation are required has been undertaken and a decision has been taken to let go of one of the offices. This took place in November 2021 allowing for a substantial saving in running costs. This has been enabled in part by a move to more home working with the assistance of internet conferencing as a means of collaboration within the staff .

An expanded vision for gospel work in Europe was put forward at the executive meeting in July 2021. To assist in this new initiative to grow new gospel work in Europe a new Gospel Growth Fund has been established. This new initiative will be shared and promoted within the EMF support base.

The principal aim remains the support of the missionaries and their work. A conference for the entire missionary body is planned for October 2022. This will be held in Spain. This had to be deferred from 2020 and 2021 and has not taken place for many years and is felt to be essential at this point. This can be seen as part of an aim to increase the level of support and networking across the EMF family of missionaries, staff, trustees and others, for the furtherance of the gospel. There is also an aim to explore more collaboration with like-minded gospel organisations working in Europe, especially with regard to church planting, publication of Christian Literature, and the spread of reformed teaching within Europe.

With regard to engagement with its supporters in the UK, and engaging the next generation of supporters, EMF aims to build on the developments adopted within 2020 and 2021, moving to increased online content and engagement, whilst maintaining links through more traditional channels .

Structure, governance and management

The charitable company is a company limited by guarantee with no share capital, incorporated on 14 September 1998. EMF is governed by its Articles of Association, adopted on 21 July 2014 in substitution for, and to the exclusion of, its previous Articles of Association. These were slightly updated in 2019 as we no longer own a property. A copy can be obtained from the company's Mission office.

The trustees, who are also the directors for the purpose of company law, and who served during the year were:

Rev G.N. Burke Mr S.M. Gay Rev D.M. Grimwade Mr G Hilton Rev P.B. Jones Rev D.L. Moore Mr N D Pountney Rev S. Quinton Rev A W J Stevens Rev M R Thomas (Appointed 26 April 2021) Rev S. Bowers (Appointed 1 November 2021) Mr L Coates (Appointed 1 November 2021)

EMF is administered and managed by the trustees, who are members of the charity for the purposes of the Companies Act, in accordance with its Articles of Association. The following organisational structure is in place:

EUROPEAN MISSIONARY FELLOWSHIP

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

1. Directors/Trustees

The directors of the company are the charity's trustees, and they are the body by which EMF is governed. Throughout this report they are referred to collectively as the trustees. The number of trustees must not be less than three but is not subject to any maximum. Appointment as a trustee is made on the recommendation of the existing trustees to a general meeting. Potential new trustees usually attend at least two general meetings on a trial basis before an appointment is made. Such appointments are based on the need for the charity as a whole to have the skills and experience to determine the policies of EMF and to monitor the implementation of those policies. Trustees are supplied with appropriate information to enable them to fulfil their duties and occasionally attend independently-organised training courses.

2. Members

The Members of the company are also known as the Executive Members. This body is comprised of all trustees. Members are appointed by a general meeting of the members. Members normally meet on a quarterly basis and require a quorum of one half of the members or three members (whichever is the greater) present in person or by proxy and entitled to vote on the business to be transacted. Members have guaranteed the liabilities of the company up to £1.00 (one pound) each.

3. Business Sub-committee

The Business Sub-Committee is made up of a group from among the trustees who are deemed suitable to advise the full Board of Trustees on financial, management and administrative policy. Their responsibilities include ensuring that the risk management and control processes within EMF are effective. They too meet on a quarterly basis with ad hoc meetings as deemed necessary. Minutes of these meetings are submitted to and approved by the Trustees at their executive meetings usually two weeks following a Business Sub Committee meeting .

4. Training Fund Sub-committee

The Training Fund Sub-Committee is made up of a group from among the trustees who are deemed suitable to advise the full Board of Trustees on the training of future mission workers and on the financial, management and administrative policies associated with the Training Fund. They too meet on a quarterly basis with ad hoc meetings as deemed necessary. Minutes of these meetings are submitted to and approved by the Trustees at their executive meetings .

5 . Company Secretary

The company secretary is appointed by the trustees.

The pay and remuneration of key management personnel are set by the trustees.

This Report has been prepared having taken advantage of the small companies exemption in the Companies Act 2006.

The trustees' r eport was approved by the Board of Trustees.

Rev D.M. Grimwade

Trustee and director Dated: 20 June 2022

EUROPEAN MISSIONARY FELLOWSHIP

INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF EUROPEAN MISSIONARY FELLOWSHIP

I report to the trustees on my examination of the financial statements of European Missionary Fellowship (the charitable company) for the year ended 31 December 2021.

Responsibilities and basis of report

As the trustees of the charitable company (and also its directors for the purposes of company law) you 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 charitable company 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 charitable company’s financial statements carried out under section 145 of the Charities Act 2011 (the 2011 Act) . In carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.

Independent examiner's statement

Since the charitable company’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 because I am a member of Association of Chartered Certified Accountants, which is one of the listed bodies.

I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me 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 attention should be drawn in this report in order to enable a proper understanding of the financial statements to be reached.

Philip John Dymond FCCA

Cheyettes Ltd 167 London Road Leicester LE2 1EG

Dated: 24 June 2022

EUROPEAN MISSIONARY FELLOWSHIP

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 DECEMBER 2021

Unrestricted
Restricted
funds
funds
2021
2021
Notes
£
£
Income and endowments from:
Donations and legacies
3
606,251
272,041
Investments
4
63,417
-
Other
5
408
-
Total income
670,076
272,041
Expenditure on:
Raising funds
6
127,186
-
Charitable activities
7
171,780
411,967
Other
12
370
-
Total expenditure
299,336
411,967
Net gains/(losses) on
investments
13
273,378
-
Net incoming/(outgoing)
resources before transfers
644,118
(139,926)
Gross transfers
between funds
(120,598)
120,598
Net movement in funds
523,520
(19,328)
Fund balances at 1 January
2021
As originally reported
2,538,623
47,422
Prior year adjustment
75,565
-
As restated
2,614,188
47,422
Fund balances at 31
December 2021
3,137,708
28,094		 Total Unrestricted
Restricted
funds
funds
2021
2020
2020
£
£
£
878,292
553,737
315,463
63,417
62,087
-
408
294
-
942,117
616,118
315,463
127,186
124,222
-
583,747
291,124
297,156
370
-
-
711,303
415,346
297,156
273,378
120,127
-
504,192
320,899
18,307
-
3,634
(3,634)
504,192
324,533
14,673
2,586,045
2,289,655
32,749
75,565
-
-
2,661,610
2,289,655
32,749
3,165,802
2,614,188
47,422		 Total
2020
£
869,200
62,087
294
931,581
124,222
588,280
-
712,502
120,127
339,206
-
339,206
2,322,404
-
2,322,404
2,661,610
Donations and legacies
3
Investments
4
Other
5
Total income
Expenditure on:
Raising funds
6
Charitable activities
7
Other
12
Total expenditure
Net gains/(losses) on
investments
13
Net incoming/(outgoing)
resources before transfers
Gross transfers
between funds
Net movement in funds
Fund balances at 1 January
2021
As originally reported
Prior year adjustment
As restated
Fund balances at 31
December 2021

The statement of financial activities includes all gains and losses recognised in the year.

All income and expenditure derive from continuing activities.

The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.

EUROPEAN MISSIONARY FELLOWSHIP

BALANCE SHEET

AS AT 31 DECEMBER 2021

Notes
Fixed assets
Tangible assets
14
Current assets
Debtors
15
Investments
16
Cash at bank and in hand
Creditors: amounts falling due within
one year
17
Net current assets
Total assets less current liabilities
Income funds
Restricted funds
19
Unrestricted funds
Designated funds
20
General unrestricted funds		 2021
£
£
1,646
16,693
2,303,621
856,879
3,177,193
(13,037)
3,164,156
3,165,802
28,094
39,186
3,098,522
3,137,708
3,165,802		 2020
£
£
1,351
93,096
2,030,243
543,638
2,666,977
(6,718)
2,660,259
2,661,610
47,422
39,609
2,574,579
2,614,188
2,661,610

The charitable company is entitled to the exemption from the audit requirement contained in section 477 of the Companies Act 2006, for the year ended 31 December 2021. No member of the charitable company has deposited a notice, pursuant to section 476, requiring an audit of these financial statements.

The trustees acknowledge their responsibilities for ensuring that the charitable company keeps accounting records which comply with section 386 of the Act and for preparing financial statements which give a true and fair view of the state of affairs of the charitable company as at the end of the financial year and of its incoming resources and application of resources, including its income and expenditure, for the financial year in accordance with the requirements of sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements , so far as applicable to the charitable company .

The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.

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 on 20 June 2022

Rev D.M. Grimwade

Trustee

Company Registration No. 03631207

EUROPEAN MISSIONARY FELLOWSHIP

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2021

Notes
Cash flows from operating activities
Cash generated from operations
24
Investing activities
Purchase of tangible fixed assets
Interest received
Net cash generated from investing
activities
Net cash used in financing activities
Net increase in cash and cash equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year		 2021
£
(1,170)
63,417		 £
250,994
62,247
-
313,241
543,638
856,879		 2020
£
(899)
62,087		 £
86,534
61,188
-
147,722
395,916
543,638

EUROPEAN MISSIONARY FELLOWSHIP

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

1 Accounting policies

Charity information

European Missionary Fellowship is a private company limited by guarantee incorporated in England and Wales. The registered office is The Old Rectory, Main Street, Glenfield, Leicester, LE3 8DG.

1.1 Accounting convention

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

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

The financial statements have been prepared under the historical cost convention, [modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value]. The principal accounting policies adopted are set out below.

1.2 Prior period error

Following a review, the trustees discovered that a legacy relating to the prior year and which was received shortly after the accounting date but before the financial statements were approved, could have been reliably measured with reasonable accuracy and should have been incorporated in the 2020 financial statements. A prior year adjustment has therefore been incorporated which increases income and debtors in the sum of £75,565.

1.3 Going concern

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

1.4 Charitable funds

General funds are u nrestricted funds that are available for use at the discretion of the trustees in furtherance of their charitable objectives which have not been designated for other purposes. Designated funds comprise unrestricted funds that have been set aside by the trustees for particular purposes.

Restricted funds are those which can only be used for particular restricted purposes within the object of the charitable company. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes. The aim and use of each restricted fund is set out in the notes to the financial statements.

1.5 Income

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

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

EUROPEAN MISSIONARY FELLOWSHIP

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

1 Accounting policies

(Continued)

Legacies are recognised on receipt or otherwise if the charitable company has been notified of an impending distribution, the amount receivable can be estimated with reasonable accuracy, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.

1.6 Expenditure

Expenditure is included in the financial statements on an accruals basis, inclusive of any VAT which cannot be recovered.

The costs of raising funds comprise those costs associated with attracting voluntary income.

Charitable expenditure comprises those costs incurred by the charitable company in the delivery of its activities and services for beneficiaries. It includes both costs that can be allocated directly to such activities and those of an indirect nature necessary to support them.

Certain expenditure is directly attributable to specific activities and has been included in those cost categories. Certain other costs, which are attributable to more than one activity, are apportioned across cost categories on the basis of either estimate of the proportion of time spent by staff or upon the usage of those activities.

1.7 Tangible fixed assets

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

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

Fixtures and fittings

20% per annum on a reducing balance basis

Freehold land is not depreciated.

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

1.8 Impairment of fixed assets

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

1.9 Cash and cash equivalents

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

EUROPEAN MISSIONARY FELLOWSHIP

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

1 Accounting policies

(Continued)

1.10 Financial instruments

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

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

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

Basic financial assets

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

Basic financial liabilities

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

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 measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

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

1.11 Employee benefits

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

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

1.12 Retirement benefits

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

EUROPEAN MISSIONARY FELLOWSHIP

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

2 Critical accounting estimates and judgements

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

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

3 Donations and legacies

Unrestricted
Restricted
funds
funds
2021
2021
£
£
Donations and gifts
357,250
272,041
Legacies receivable
249,001
-
606,251
272,041		 TotalUnrestricted
Restricted
funds
funds
2021
2020
2020
£
£
£
629,291
326,003
315,463
249,001
227,734
-
878,292
553,737
315,463		 Total
2020
£
641,466
227,734
869,200

4 Investments

Income from listed investments
Interest receivable		 2021
£
61,978
1,439
63,417		 2020
£
60,626
1,461
62,087

5 Other

2021 2020
£ £
Literature sales 408 294

EUROPEAN MISSIONARY FELLOWSHIP

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

6 Raising funds

Fundraising and publicity
Travel expenses
Telephone and office expenses
Newsletter
Literature
Other fundraising costs
Staff costs
Depreciation and impairment
Fundraising and publicity		 2021
£
16,928
4,160
19,985
1,689
6,924
77,314
186
127,186		 2020
£
16,719
4,884
18,210
149
7,514
76,621
125
124,222

7 Charitable activities

Staff costs
Depreciation and impairment
Other costs
Grant funding of activities (see note 8)
Analysis by fund
Unrestricted funds
Restricted funds
For the year ended 31 December 2020
Unrestricted funds
Restricted funds		 Mission
support
Literature
work
Church
building
£
£
£
88,135
3,745
708
267
25
25
43,746
1,601
1,508
132,148
5,371
2,241
421,412
21,905
670
553,560
27,276
2,911
164,168
5,371
2,241
389,392
21,905
670
553,560
27,276
2,911
283,165
5,624
2,335
236,664
24,354
36,138
519,829
29,978
38,473		 Total
2021
£
92,588
317
46,855
139,760
443,987
583,747
171,780
411,967
583,747		 Total
2020
£
94,317
213
56,748
151,278
437,002
588,280
291,124
297,156
588,280

EUROPEAN MISSIONARY FELLOWSHIP

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

8 Grants payable

Grants to institutions (186 grants):
Support of missionaries in Europe
Legatio, Poland
Editorial Peregrino, Spain
Sines, Portugal
Wodzislaw, Poland
Ciudad Real, Spain
Alto Do Moinho, Portugal
Ioannina, Greece
Zywiec, Poland
Other
Grants to individuals (278 grants)		 Mission
support
Literature
work
Church
building
£
£
£
194,136
-
-
-
6,825
-
-
13,800
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
670
17,090
-
-
211,226
20,625
670
210,186
1,280
-
421,412
21,905
670		 Total
£
194,136
6,825
13,800
-
-
-
-
-
670
17,090
232,521
211,466
443,987		 2020
£
147,057
-
13,704
1,000
5,610
1,750
22,950
4,828
-
6,789
203,688
233,314
437,002

Details of the institutions that received grants during the year for the support of missionaries in Europe and the amounts paid to each institution are available upon request in writing to the registered office at The Old Rectory, Main Street, Glenfield, Leicester LE3 8DG.

EUROPEAN MISSIONARY FELLOWSHIP

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

9 Support costs

Staff costs
Administrative
expenses
Independent
examiners fees
Legal and
professional
Bank charges
Depreciation		 Mission
Literature
Church
support
work
building
£
£
£
55,986
2,204
70
37,930
278
185
2,414
50
50
-
-
-
1,333
28
28
267
25
25
97,930
2,585
358		 Total
2021
£
58,260
38,393
2,514
-
1,389
317
100,873		 Total
2020
£
60,619
39,747
2,454
13
1,390
213
104,436

Administrative expenses includes premises costs, office expenses and travel expenses which have been apportioned on a usage basis. Other costs within administrative expenses and staff costs are apportioned on a time basis.

10 Trustees

None of the trustees (or any persons connected with them) received any remuneration or benefits from the charitable company during the year.

No remuneration was paid to the trustees. Six trustees were reimbursed a total of £ 670 for travel costs, which were incurred performing voluntary work for the charitable company (20 20 - four trustees were reimbursed £ 572 ).

EUROPEAN MISSIONARY FELLOWSHIP

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

11 Employees

Number of employees

The average monthly number of employees during the year was:

Administrative and support
Representatives
Management
Retired workers
Employment costs
Wages and salaries
Social security costs
Other pension costs		 2021
Number
1
1
3
5
10
2021
£
144,154
12,076
13,672
169,902		 2020
Number
1
1
3
5
10
2020
£
145,551
12,244
13,143
170,938

There were no employees whose annual remuneration was £60,000 or more.

12 Other

Unrestricted Total
funds
£
2021 2020
Net loss on disposal of tangible fixed assets 370 -
370 -
13 Net gains/(losses) on investments
Unrestricted Unrestricted
funds funds
2021 2020
£ £
Revaluation of investments 273,378 120,127

EUROPEAN MISSIONARY FELLOWSHIP

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

14
Tangible fixed assets
Cost
At 1 January 2021
Additions
Disposals
At 31 December 2021
Depreciation and impairment
At 1 January 2021
Depreciation charged in the year
Eliminated in respect of disposals
At 31 December 2021
Carrying amount
At 31 December 2021
At 31 December 2020
15
Debtors
Amounts falling due within one year:
Other debtors
Prepayments and accrued income
16
Current asset investments
Listed investments
17
Creditors: amounts falling due within one year
Other taxation and social security
Other creditors
Accruals and deferred income		 Fixtures and fittings
£
12,406
1,170
(2,670)
10,906
11,056
504
(2,300)
9,260
1,646
1,351
2021
2020
£
£
4,783
4,188
11,910
88,908
16,693
93,096
2021
2020
£
£
2,303,621
2,030,243
2021
2020
£
£
3,347
4,114
-
150
9,690
2,454
13,037
6,718

EUROPEAN MISSIONARY FELLOWSHIP

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

18 Retirement benefit schemes

Defined contribution schemes

The charitable company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the charitable company in an independently administered fund.

The charge to expenditure in respect of defined contribution schemes was £13,672 (2020 - £13,143). Costs are allocated between activities and funds in accordance with the assignment of employment activities and the accounting policy on expenditure detailed herein.

EUROPEAN MISSIONARY FELLOWSHIP

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

19 Restricted funds

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

Balance at
1 January 2020
£
Support of missionaries and personnel
23,857
Literature work in Europe
-
Church building
-
Beesley Memorial Trust
7,227
Small restricted funds
1,665
32,749		 Movement in funds
Income
Expenses
£
£
205,061
(194,497)
24,354
(24,354)
36,138
(36,138)
-
(7,227)
49,910
(34,940)
315,463
(297,156)		 Transfers
Balance at
1 January 2021
£
£
(1,970)
32,451
-
-
-
-
-
-
(1,664)
14,971
(3,634)
47,422		 Movement in funds
Income
Expenses
£
£
223,998
(348,953)
21,905
(21,905)
670
(670)
-
-
25,468
(40,439)
272,041
(411,967)		 Transfers
Balance at
31 December
2021
£
£
120,598
28,094
-
-
-
-
-
-
-
-
120,598
28,094

EUROPEAN MISSIONARY FELLOWSHIP

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2021

19 Restricted funds

(Continued)

Support of missionaries and personnel

These amounts represent the totals of numerous small funds created by donations received for the purpose of assisting with the support of particular missionaries and members of the charity's personnel. Funds received have been distributed in accordance with the donors' requirements. Details of the individual funds can be obtained from the Mission Office.

Literature work in Europe

This restricted fund represents donations received to provide funds for activities associated with the translation and publication of Christian literature in European languages.

Church building

The restricted fund was opened in order to receive donations for church building projects in Sines, Portugal and Wodzislaw, Poland.

Beesley Memorial Fund

This fund was originally set up in 1997 with a donation received from the estate of Mr Beesley. The purpose of the fund is to provide financial support for the training of foreign nationals for the work of the Gospel, for Christian literature work and church planting and evangelistic work.

Small r estricted funds

These amounts represent the totals of various small funds created by donations for specific purposes. All funds are being distributed in accordance with the donors' requirements. Details of the individual funds can be obtained from the Mission Office.

Transfers

Transfers represent the use of unrestricted funds to supplement the charity's directly supported missionary work.

EUROPEAN MISSIONARY FELLOWSHIP

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

20 Designated funds

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

Balance at
1 January 2020
£
Training fund
16,680
16,680		 Movement in funds
Income
Expenses
Balance at
1 January 2021
£
£
£
30,513
(7,584)
39,609
30,513
(7,584)
39,609		 Movement in funds
Income
Expenses
Balance at
31 December
2021
£
£
£
31,596
(32,019)
39,186
31,596
(32,019)
39,186

Training fund

This fund was established in 2019 to support potential studies in ministry training - particularly, though not exclusively, for a two year course through London Seminary.

21 Analysis of net assets between funds

Unrestricted
Restricted
2021
2021
£
£
Fund balances at 31 December 2021 are
represented by:
Tangible assets
1,646
-
Current assets/(liabilities)
3,136,062
28,094
3,137,708
28,094		 Total
2021
£
1,646
3,164,156
3,165,802		 Total
2020
£
1,351
2,660,259
2,661,610

22 Operating lease commitments

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

2021 2020
£ £
Within one year 4,140 6,282

23 Related party transactions

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

EUROPEAN MISSIONARY FELLOWSHIP

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

24 Cash generated from operations 2021 2020
£ £
Surplus for the year 504,192 339,206
Adjustments for:
Investment income recognised in statement of financial activities (63,417) (62,087)
Loss on disposal of tangible fixed assets 370 -
Fair value gains and losses on investments (273,378) (120,127)
Depreciation and impairment of tangible fixed assets 503 338
Movements in working capital:
Decrease/(increase) in debtors 76,405 (66,821)
Increase/(decrease) in creditors 6,319 (3,975)
Cash generated from operations 250,994 86,534
25 Analysis of changes in net funds

The charitable company had no debt during the year.