2023 44 Ics Intercontinental Church Society Unit 11 Ensign Business Centre INTERCONTINENTAL CHURCH SOCIETY 200 YEARS 23-2023 Westwood Way Westw¢)od Business Park cOVE￿rRy CV4 8JA Registered Charity. 1072S84 A company fimited by guarantee registered in E￿land and Wales: 3630342 Table of Contents Word from the Chair Mission Directorfs Introduction Directors and Trustees, Report Our Objectives and Values 5-25 Executive Report Resort Mission 9-10 Communications 10-12 Propety 13 Environment 13-14 Future Plans 15 Partnerships 16 Ovepiiew of financial plan and strategy in 2023 17-19 Council and Govemance 20-24 How we are Structured 25 Independent Auditors Report 26-28 Statement of Financial Activities 29 Balance Sheet 30 Statement of Cash Flows 31 Notes to the Accounts 32-43 IC5.. Hplyvirg oetsP';e firLY 1>5.JS. Intercontinental ChLtrch Society Trustees Annual Rewrt 2023 Word from the Chair Dear Friends It has been said that a substantial proportion of companies currentty in the FfsE index will no longer exist in twenty-five years, time. In our rapidly changing world, adaptability is a key requirement. In that context it is rather wonderful to be a550ciated with a mission agency that has just celebrated 2CKI years of existence. Part of that surviving and thriving has been to be quick enough to respond to the changing context in which we do mission. The name of the Society has changed as has its emphasis. The fundamental values and purpose have not. We exist to share the gospel through local churches for English speakers and to plant new work where there is opportunity. The Lord has graciously continued to provide resources for this ministry through the generous giving of our supporters, including recent legacies, opening possibilities for yet more people to hear the gospel. This year, l am especially grateful for all who responded so kindly to our 200 Anniversary Appeal. At our Council meetings, Mission Direttor, Richard Bromley, updates us on the work. It 15 especially thrilling to hear of new projects taking root and moving towards sustainability. It is a privilege to have been able to 'pump prime, such new ventures. The world is going through a phase of great uncertainty. Wars continue in Ukraine and the conflict between Israel and Palestine shows no sign of a resolution. In such uncertainty, people's minds do turn to eternal realities. Jesus said that'the harvest was plentiful but the workers few,. As people made in the image of God there is a spiritual void in everyone that only the Lord can fill. My prayer for us going forward is that we will identify and send the workers, both short and long term, who can sense the movement of the Spirit and join in. With grateful thanks again for all your support and prayers. Yours The Rt Revd Richard Jackson Chair of ICS Council and Bishop of Hereford Dioce>e of - Hereford ICS.. Helping ppoplef.'nJ jPbilS. Intercontinental Church Society Tnjstees Annual Report 2023 Mission Directorfs introduction It is very easy to fish for compliments. 'do you like my new coaty In ministry we rarely get a sense of what people really think about the way we serve- 2023 has been a very different experience. Having decided to celebrate our 2(X) year in a low-key way. a midweek celebration. and a commitment to give away £2(K),O(N) to New Mission. we were utterly blown away by the encouragements, support, and generosity we received through financial gifts, phone calls expressing SUPPOrt, notes and cards celebrating 21X) years with us, declaring people's love and support for the ministry. Then there were also those passing words of encouragement, either directly or through third parties, that have been a feature of 2023, and which have been delightful! When we produced the 2(K) annsversary booklet, celebrating 200 years of ICS. we decided to dedicate half of it to how people's lives have been impacted by the ministry of ICS, inviting their messages and stories. I cannot remember whose idea it was {[ suspect it wasn't mine} but it was the right thing to do because the network and people make ICS what it is. At the celebration event in London, on a Tuesday moming in June. we wondered whether anybody would turn up but again we were blown away by the attendance and the atmosphere at that celebration. Looking back, we absolutely achieved what we had hoped for, a sense of thanksgiving and celebration and a joy of being together. It was so good to meet people who we had only ever read about or been in correspondence with, to just spend time wtth old friends. l am grateful to Andy Flannagan for leading the worship, to Bishop Robert and Bishop Richard for taking part in the programme, to Mimy for bringing a uniquely Leipzig and missional perspective, and of course to the ICS team who made it all happen before and at the event. Archbishop Justin sent in a video which made some salient points, we have made a point of keeping it available on our website. Our commitment for new work and to invigorate mission continues and so two pieces were started in 2023: Liège and Grenoble. Both places have potential but also challenges, being often of either migrant or transient congregations. ICS will stand with these chaplaincies over the coming years. IC5.. Fleloing pegplofind Je>tsS. Intercontinental Church S(Kiety Trustees Annual Report 2023 It was with sadness that we saw our Treasurer, Chris Weller, stand down in 2023 having completed his six-year term. Chris has been an amazing Treasurer who brought vision, a passion for new work and a calm trustworthy presence to the role. A huge thank you to him and Dorothy for their time, commitment, and energy. I look forward to keeping in contact with a Treasurer who has become a friend. At the same time, it has been a delight to welcome Graham Sopp as our new Treasurer. Graham brings such wisdom and experience to the role; he is ideally placed to support ICS into this next phase of our ministry. You will hear more from him later in this report. As ever, my thanks go out to the ICS team: Maggie, Jeannette, Jac, Yelena, Jim and Alice for their hard work and comrnwtment throughout 2023. There have been some exceptionally busy moments! I commend this report to you and hope you catch something of the vision and energy that IS percolating within ICS. Yours in Christ, The Revd Canon Richard W Bromley MA ICS Mission Director ICS. Heloing pA-ole f,'nJ, Intercontinentsl Church Society Trustees Annual Report 2023 JUS. Directors and Trustees, Report ICS objective 'To advance the Christian Gospel by Evangelical Mission and Ministry to English- speaking people throughout the world., The Permanent Chaplaincies, both Patronage and Associate, provide beacons of outreach, worship, and care. Our support of the mission partners who serve these chaplaincies enhances their ability to serve, minister and operate effectively. Short-temi Mission and Outreach, with the opportunity to communicate the Good News of Jesus Christ, provides acts of worship, engagement with tourists and travellers and a resident chaplain to allow us to fulfil our object in numerous locations around Europe. New Work is driven by a passion to advance the Christian Gospel as per our objective. Our strapline: 'Helping people find Jesus, communicates the desire behind all we do. While we would want to unpack this in many ways, it does get at the heart of what we are about as an evangelical mission agency. ICS values The Bible as our guide and final authority. The pursuit of excellence in all that we do. Integrity in all areas of our work, seeking to be transparent, honest, and genuine in our dealings, internally and externally. Partnerships and seek to work this way whenever possible with like-minded groups and individuals. The pursuit of ministering at the frontiers," this has marked ICS over the years. We value volunteers and the voluntary principle in the pursuit of our.-. objettives. ICS.. Helping o•.:: - ntercontinental Church ￿)CIety Trustees Annual Report 2023 Executive Report Permanent Chaplains ICS serves a number of chaplains and chaplaincies: Associate Ministry Partners, and those where ICS has Patronage. We support them in various ways, firstly through Coaching where each new chaplain is being coached for the first six months, as well as the offer of ad-hoc coaching whenever is required. Secondly, we help chaplaincies think strategically about which direction they want to go, sometimes as a pre-recruitment review or as strategy days. Thirdly, we help recruit new chaplains. This year we were delighted to welcome Matt Thijs at St James Voorschoten, Jay Colwill at St Michael's Paris, and in the Falkland Islands, Hayley Argles- Grant. We have made nomTnations for appointments at Holy Trinity Cannes and St Peterfs Chantilly, these chaplains will take up their roles in 2024. fvlatt Thiis ￿ZE11£ and Ezra Ha.k. We are delighted to welcome a new Associate Ministry Partner: Sarah-jane King who serves at St Martha and St Mapls Leuven. Safarpjane King wrth RLn8er. 8ram ano Max It is worthy to note that Paul Vrolijk of Holy Trinity Brussels, Dale Hanson of St Marys Versailles, Nick Finlay of St Marc's Grenoble, and Jonathan Clark of St Michael's Paris have all moved on. They will be missed, and we wish thern well in their new stages of life and ministry. IC5." Heloina oeoole find Je5US. Intercontinental Church SocietyTrustees Annual Report 2023 Finally, we setve and support our mission partner5 through the ICS Conference. This year this took place in Beatenberg in Switzerland, we were delighted to have The Revd Jenni Williams with us for the Bible teachings on the Book of Ruth, and Caroline Colwell from Stewardship who reflected on giving and the different models of funding. As usual, the Conferen￿ was a time of encouragement, refreshment, and fellowship for the chaplains and their families. Province of Alexandria The ministry in Egypt has been established for some time. In February. the Mission Director had the privilege to be part of the Synod as the new Province emerges and develops its structures. One of the joys of being there was to be able to pray with Crimson from Libya who was being priested in preparation for his service in Libya. In Tunis, where the St Cyprian training centre is also based, our Mission Partner, Frank Bernardi. continues to do good work. In Algiers, we had hoped that a new chaplain would be in place now but sadly, due to some complex governmental changes and visa issues. this has not been possible. The church continues to meet and is lay led. In Ethiopia, Martin Reakes-williams has continued to flourish and develop the ministry often working more widely than only as Rector of St Matthews. It was recently announced that Martin is to become Bishop of the Horn of Africa as the opportunities and needs demand more local oversight, which he will be able to provide. mO￿n Reoke5-Willioms vislting o refugee camp. IC5.' Helpii'y Deofjie jIoa J?sUS. Intercontinentsl Church Society Tnjstees Annual Report 2023 New Work We continue to support new work in Izmir where we recently received reports of a Christmas Fair that was so well publicised and supported that there were queues of people that ran all the way down the street. Around 4,5{￿ people came through the doors that day, many took time to srt, read the Gospel and reflect. Several hundred copies of the New Testament were given away and many useful contacts made. The importance of a wise witness in this place cannot be underestimated and the work that James Buxton has done over the last few years and continues to do today is exceptional. He is a respectful, culturally sensitive priest who is creating a generous welcome for those who wish to find out more. The Christmos Foir in Izmir In Kortrijk, we continue to support the work of Augustine Nwaekwe a5 he seeks to plant a congregation there. In Grenoble, ICS helps to finance, alongside the Diocese in Europe, the youth work by employing two part-time workers. ICS. Hgiping- OJe[.nU. Intercontinentsl Church Society Trustees Annual Report 2023 Resort Mission - building up and looking forward Volunteers Through 2023. thirty-two different chaplains wrth family and team members served as volunteers in our chaplaincies in Switzerland and Greece, two of which served both winter and summer and four served for the first time, between them they served for eighty weeks in total. We covered the full periods in all resorts, except for two weeks in Wengen due to family health issues, and in Interlaken which remains suspended with an uncertain future {although we are hopeful to run a shortened season in 2024). Resort Mission Working Group The Resort Mission Working Group reported to the Council in November 2023. Following the discussion, the Chair of Council invited the current group to disband and a new group to be formed under the chairmanship of council member rim Wright. This group is asked to make recommendations as regards the short-term missional vision of ICS in time for discussion at the Council meeting in April 2024. The main immediate change. in the hope of better clarifying the core rationale of the work, was to adopt the name 'Short-term Mission, from 2024. rather than 'Resort Mission, or the older'seasonal Mission. However, the two older titles are likely to remain in some use for the foreseeable future due to historic administration issues. Investigating new opportunities By invitation of the resident chaplain in Izmir, the Resort Mission Manager travelled to Turkey for a feasibility Study of resort mission based in Didim (roughly a two-hour drive from Izmirl, where there is an existing congregation linked with the Izmir chaplaincy. Despite it being a very interesting and informative trip, and the local congregation being in very good heart, it did not seem to be the right place and/or the right time to commence resort mission there. Further investigation suggests that the same is currently true in Ibiza. Other opportunities could be investigated during 2024, and the door is certainly not closed on either of these aforementioned two places should situations change. Existing work After an encouraging winter season, somewhat adversely affected in the second half by the poor conditions for winter sports due to the 'unseasonable' weather, summer 2023 was particularly exciting in our Swiss resorts of Wengen and Zermatt with report5 of significant numbers of visitors, and great mission opportunities for the chaplains, seemingly to a level greater than those prior to the 2020 pandemic interruption. Attendances at Christmas services were also extremely encouraging and the opportunities for mission here seem to be strong for 2024. St. PEtTr'i". ICS.. hJ?loJng p•.JtslJ pnd 1•sUS. Intercontinentsl Church Society Tnjstees Annual Report 2023 The ongoing 'new work, in Corfu, in partnership with the Island Chaplaincy, continued to prove very valuable and greatly appreciated by the resident chaplain and congregation as a significant support of their own mission and ministry. In future. this will be seen as an established area of Short-Term Mission with some changes to the focal areas for the outreach. Chaplains in 2024 will be based on the edge of Corfu Town, rather than near the marina in Gouvia and it is likely that a greater proportion of their time will be spent here. Building maintenance 2023 has seen some maintenance of the apartment in Zemiatt to ensure electrical safety and to improve the lighting and cleanliness through redecoration. In Wengen, repair works have commenced on the church to weatherproof the building. The main project for 2024 will be the long- overdue repair of the windows in the church in Zemiatt due to take place in May during the mid- season closure. Partnerships We are extremely grateful for the strong partnerships which ICS Resort Mission has with a variety of organisation5 who both assist and value the work we do. Namely- The Ski Club of Great Britain, The Down Hill Only Club in Wengen. Zennatt Bergbahnen company, Wengen Tourist Office, Interlaken Tourist Office, Holy Trinity Corfu, the Swiss Refomied Church in Lauterbrunnen, the Swiss Reformed Church in Interlaken, the Roman Catholic Church in Grindelwald. the Gemeinde in Zermatt, Canton of Wallis/Valais. Communications Post-COVID, ICS has tried to increase and improve the relationship we have with local churches as this was one of the areas that suffered the last few years. We did a significant push seeking deputation opportunities with, sadly, a minimal response. However, the Mission Director did get to speak in the churches of Butleigh and Great Doddington. ICS publications ICS News and Prayer Diary has been transfomied into one publication- a welcome change. This combined publication now gives opportunity to be used more effectively with news and prayer in one place. The design of the magazine continues to be attractively produced by Alex Grey, and the printing and mailing process is handled efficiently by Swan Print Ltd. in Bedford. ICS News and Prayer Update is a monthly communication that is produced in-house. It is mailed out by post to over 250 addresses and by email to more than 650 subscribers. This 2CK)th anniversary year we produced a booklet that looked back, describing the mission and ministry of ICS, right from the very beginning to today. It also depicted people's memories of ICS and how it had touched thelr lives- a lovely reminder foryears to come. ICS Aurtion As we looked through the archives and prepared to celebrate our 21)) anniversary, we found various items that had been donated or collected over the years, e.g. paintings, drawings, glass slides, silver (plated) items (mainly communion sets). commemorative coin and books. So that these items could be enjoyed and used rather than being locked away in our cupboards, it was decided to offer them for sale with the funds raised going towards ICS'S mission and ministry. ICS.- Helping pe_ol) r'na rg JLfS. Intercontinental Church Society Trustees Annual Rewrt 2023 io Christmas Cards A selection of ICS Christmas cards was sold for fundraising, with a newly designed pack on offer. This pack comprised three different stained-glass windows from around ICS chaplaincies. There was also the additional option sending ICS E-cards through 'DontSendMeACard.com' Il Website The ICS website is both an important communications tool and fundraising platform. It features stories, points for prayer and job vacancies. It also allows chaplaincies to raise funds for their ministry and mission. People can donate. sign-up for events, be added to our mailing list, become a member, or renew their membership all online. th In our 2(Kl anniversary year we asked people to fundraise towards the th Anniversary Appeal. Some people organised coffee mornings, and former Corfu and Ostend/Bruges Chaplain, Clifford Owen, cycled from Land's End to John O'Groats. Clifford had undertaken a similar ride many years ago but now completed it again at the age of 801 In the process he raised a good amount of money for the 21)0 appeal for which we were very grateful. SA Yo .lJy441"& Dwen ondh15 daughter iJ*4 ICS continues to raise funds from donated Used Stamps and stamp or coin collections. In 2023, this amounted to £744.74. Google Ads are used to increase the number of visitors to our site. ICS." Heloing peoole find Je5U5. Intercontinental Church Society Trustees Annual Report 2023 li ICS Zoom Prayer Meetings, which run bi-monthly. continue to be well attended. An ICS Mission Partner leads a time of Devotion, updates us on their chaplaincy, then a time of prayer follow5. These meetings give opportunity to catch up with people from all over the world. ICS Online Social media is used to let supporters know what's going on in the life of ICS and to allow us to keep them connected. IYS also a good way to attract new people by creating engaging content. Our primary social media channel is Facebook which we use to share the latest news Stories along with photos and videos from across the chaplaincies and ministries we work with and support. Facebook groups are used to keep people even better connected. Our Prayer Group has over 350 members who we update daily with prayer points. We also use various Facebook groups for seasonal mission as it allows the seasonal chaplains to post their own updates about what has been happening and allow them to connect with each other-this has had increasing engagement over the years. We also use Facebook ads to supplement our seasonal work specifically targeting those visiting the region who may be looking for a church to attend. This year we helped the church in Ibiza with their 'Here For You, campaign over the summer by using Facebook Ads for those visiting the Island on holiday to be directed to their page. This year has seen a shift away from text and imagery towards video content which has led to us to produce more engaging bi-monthly prayer videos. short Instagram Reels from the different cities where chaplaincies are located. and interviews with chaplains. This culminated at the end of the year with our advent video series which saw members from twenty of our mission partners across the world from Belgium to Oman join to read the Christmas story. IC5 Heloirpg finiv lJ>LIj. Intercontinental Church Society Tru5tee5 Annual Rewjrt 2023 12 Property owned by ICS Declaration d'occupation - French Residential Properties A new French tax reporting requirement was introduced in 2023 which required the occupation status of residential properties on l January 2023 to be declared to the authorities. Initial declarations were made for ICS properties in Aquitaine, Cannes, Chantilly, Maisons-Laffitte and Versailles. St Marfs Rotterdam ICS have completed the tax registrdtion process in Rotterdam forthe transfer of the courtyard to be completed. All the documents have been signed with the notary and work continues to finalise the transfer. St Michael's Paris In October, a special meeting was called to consider the co-owners, proposal for redevelopment of 5 rue d Agusseau. The delegation of authority for David White to attend the meeting was trdnslated, notarised and apostilled. The October meeting did not happen as a formal AG but did take place as an exchange of views between all parties to agree a mutually acceptable way forward. David White has been invaluable in progressing this for ICS. Usage Agreements Visits to the French chaplaincies to discuss Usage Agreements have taken place this year. The Rotterdam agreement has also been prepared to support the transfer of the courtyard. Environment Green Agenda Conscious Choices 2023 In June 2022, General Synod adopted a revised policy to support and promote the 'Towards Net Zero, Programme of Activity, recognising that the progress has been slower than originally envisaged. Initially ICS considered our environmental responsibility from the perspectlve of the office-based operations in the UK, we are now also working with the Caring for Creation group in the Diocese of Europe to understand the impact of ICS churches in Europe. Climate Stewards conducted a bespoke analysis of ICS travel in 2022, as the complexity of international travel does not fit their UK software tool. Flights, intemational public transport, UK public transport and mileage have all been assessed as separate entities. For the level of activity, the combined CO2 equivalent for travel is relatively low at 12.44 tonnes CO2e. Flights within Europe contribute 4.14 tonnes CO2e and in 2022 there was one long haul flight bringing the worldwide total to 8.3 tonnes Cole. ICS has offset the 2022 travel footprint with Climate Steward5 at their standard rate of £20 per tonne C02e paying £248.80 to their offsetting programme. r Climate ' Stewards ICS.. Helping peoplefv"ndJesus. Intercontinentsl Church SocÉety Trustees Annual Report 2023 13 ki M(Jp of worldwideflights Mop of Europeonflights We are conscious of the impart of travel on our carbon footprint and always look for the optimum solution when booking travel. The ICS office uses electricity from renewable sources reducing our emissions to zero for this category. We continue to be good steward5, making conscious choices, reducing usage and waste, and buying ethically and locally as much as possible to reduce our overall impact. Our overall footprint will continue to be monitored as we progress towards the net zero target. ICS churches in Wengen and Zermatt At St Bernard's Wengen, we are seeking an alternative heating solution that will 'heat the person not the space, to divest from the use of fossil fuels. The stained-glass windows in Zermatt have been sunieyed by the Gemeinde and a local glass expert with a view to refurbishing the windows to mitigate draughts and improve the environmental ambience at St Peters. Intercontinentsl Church SocietyTrustees Annual ReFX)rt 2023 14 Future Plans In 2024 we intend to financially sUPPOrt the ministry in Liège where the chaplaincy is growing, with the ambition that by removing this pressure, they can focus more effectively on mission and outreach. Liège is a busy industrial town with a large migrant population, and chaplain Guy Diakiese is well placed to prayerfully develop and accelerate these opportunities. We will underwrite the salary costs of the Priest at St Mards Grenoble for the next three years. We have been pained by the challenge of having a vibrant, growing church that cannot afford ordained paid leadership due to the make-up and background of the people in the church at this time. There was this challenge of great opportunities but limited local funds to maximise them. With this in mind, ICS decided to support this post seeking to provide a breathing space for ministry to develop but with a clear objective towards a sustainable funding model or different approach to ministry that maximises the opportunities present. In 2023 we conducted a major review into Resort Mission and now a more practical strategic plan for the ongoing direction and staffing needs to be developed. Council member, Tim Wright, will continue to take this forward. It became clear that what we do is 'Short-term Mission, and we have always struggled to find the right name for it. We used to call it Seasonal Ministry and then Resort Ministry, both words have baggage and do not give the right explanation. From this point forward we will refer to this part of our ministry as ICS Short-term Mission. Our hope is that it continues to be a valuable and important part of the ongoing ministry of ICS. In 2024 we anticipate being involved in the recruitment at Holy Trinity Brussels. the chaplaincy in Amhem and Nijmegen. the chaplaincy in Aquitaine and at St Mards Grenoble. Currently we are not aware of any others and considering how busy 2023 was, it would be useful to have a little bit more breathing space in 2024. In 2024 we will redesign the ICS website. The current website is excellent but extremely costly and we have concluded that it is not value for money for our needs. The new, smaller, targeted website is being designed by Alice Myles and will go live in April. We had hoped to celebrate 21X) years of ICS in both Northern Ireland and England in 2023, however, due to the complexities of many people's diaries it becarne apparent this could not happen and so we are delighted to hold our 21x1 anniversary celebration in Northern Ireland at the end of our 200 year, on 8 May 2024 at Hillsborough Parish Church. We look forward to meeting our friends and 5UPPOrters there. Please contact the ICS office for more information. ICS has a strong footprint in Europe but with significant ministry further afield which is often more difficult to resource as it is dispersed with various needs and challenges. We continue to delight in having this diverstty and see our gift as placing English-speaking clergy in various parts of the world. The Mission Director intends to strategically develop these in 2024. Finally, we were informed that the landlords of our office intended to sell the property. After researching options, we decided to put in a bid ourselves and are therefore in the process of buying the office that we previously rented. Once the purchase is complete. we intend to renovate and refurbish it to a level that makes it fit for purpose for the next ten to fifteen years. There are many things that are outdated. broken, or worn out and so this is the moment to get it right so that in years to come we can focus on ministry and not fabric. The above with all the ongoing work that ICS is engaged in sets out our direction for the coming year. ICS. Helping people find Jestss. Intercontinental Church Society TnJstees Annual RetK)rt 2023 15 Partnerships ICS continues to enjoy strong and positive links with the Diocese in Europe. the Province of Alexandria, and the Diocese in Singapore. In the Diocese in Europe, the Mission Director is present at the Synod and Bishop's Council. The partnership with the Province of Alexandria continues to be warm and our relationship with Archbishop Samy and his team is excellent. We continue to support in the recruitment of English-speaking chaplains when called upon. We continue our link with the International Church Leadership Network. Often from the US, but not exclusively, they are involved in church planting. very similar to our own, but from different denominational backgrounds. ICS is an attive partner of the Partnership for World Mission where the Anglican mission agencies gather. We also work in close collaboration with Lambeth Palace with relation to areas of shared interest, which this year was focussed around the recruitment of a new chaplain in the Falkland Islands. Volunteers ICS started as a volunteer society as Bishop Robert pointed out during his talk at the 200th celebration. Our volunteers are also our partners, and we are delighted with their commitment, energy, and support. Notably our Council members, their contribution and support outside the regular meetings are gratefully receFved. We have a positive, engaged Council who readily take on roles, this ts a blessed position to be in. Additionally. the following people volunteer with us- Resort Chaplains People who distribute ICS New5 ond prayer diories. People who organise ICS prayer meetings. David White who supports us with property issues and acts as a Secretariat to the Council. Denise Bromley who provides administrative sUPPOrt. lan Ward who sUPPOrts on database development. Tim Wright who links ICS with churches in the Republic of Ireland and Northern Ireland. Council members, Folli Olokose and rim Wright. who have served and travelled extensively in 2023 supporting the recruitment of Chaplains where we have patronage. It is our privilege to say thank you to them for their time, energy, enthusiasm, and commitment. ICS.. Helpftng oeoplefindJe5US. Intercontinentsl Church Society Trustees Annual Report 2023 16 Overview of financial plan and strategy in 2023 Council planned that 2023 should be a year of continuity with no material change in activity or direction other than beginning to identify projects for support from the 2(￿￿h anniversary fund. A deficit on the general fund was budgeted to be £211,IKK). In the event, a surplus of £847,119 was achieved for the general fund thanks largely to an exceptional year for legacies. Income General unrestricted income at £1.338.163 was £967,985 higher than in 2022. Subscription and donation income from individuals at £180,785 was £48,763 higher than the previous year refletting giving to celebrate the 2CM)th anniversary of the Society. However, the main reason for the change was an increase in legacy income. In 2023 the Society was notified of legacies in the amount of £1,105,196 compared to £103,080 in the previous year. Donations received for specific chaplaincies and projects came to £255,428 which was above the 2022 figure of £199,443, again due to a legacy. Dividends and interest on the investment portfolio amounted to £72,475 which was £6,562 higher than the previous year. Total income came to £1,597,454 against £571,015 in 2022. Expenditure Our charitable activity expenditure is shown under the following headings: New Mission work- covering grants and direct expenditure on developing new mission opportunsties and initiatives in outreach sttuations for both permanent and seasonal ministry. Ongoing Mission work- covering direct expenditu￿ on recruitrnent, placement and the continuing support of chaplains in their permanent and seasonal ministries. Staff and support costs - all costs related to administering the charitable activities of the Society. Costs of raising funds- covering direct expenditure incurred in raising funds including trading activtties. Direct expenditure on New Mission work is detailed in Note 3 of the financial statements and totalled £30,899 compared to £18,333 in 2022. Expenditure for Ongoing Mission work with permanent chaplaincies is lower than 2022 at £149,625. Resort Missions expenditure is above 2022 due to the building maintenance work carried out in 2023. Staff and support costs at £425,983 were above budget and higher than last year reflecting the impact of a higher rate of inflation. The cost of the Chaplains, Conference was £22,967 against £23,345 in 2022. Total expenditure amounted to £682,356 compared to £610.537 in 2022. Intercontinental Church Society Twstees Annual Report 2023 17 Net gain on investments Net gains on the investment portFolio amounted to £61,106 compared to a net Soss of £162,829 in the previous year. Of this net gain, a gain of £84,055 was attributable to the endowment funds and aloss of £22,948 to the general funds. Financial result for the year. The significant frdctors contributing to the financial result for the year We￿ the receipt of very generous legacies, a good response to Appeals and consistent regular giving. A negative factor was the impact of the high level of inflation on costs. The result was an overall surplus for the year of £976,204 compared to an overall deficit of £202,351 in 2022. Total funds carried forward at the end of the year totalled £4,012,385 against £3,036,181 the previous year. Investments The portfolio of investments is professionally managed by CCLA Investment Management Ltd and Ruffer LLP. It is invested to provide regular income whilst maintaining capital value. The investment policy is to invest in companies whose activities do not conflict with the ethos and basis of belief of the Society, but give the levels of yield necessary to enable it to continue supporting both new and ongoing mission work. The Society has made no social investments. The net gain of the portfolio over the last year reflected the generdl uncertainty of financial markets in the face of conflict in Ukraine and the Middle East coupled with high levels of inflation and interest rates. The result was that the Socievs portfolio increased in value overthe year by 2.3% whereas 2022 showed a decrease of around 5.8%. Our budget for 2024 does not assume any capital gains from the portfolio. Current Assets The Society has short-term depostts with CCLA Investment Management Ltd totalling £42,883 and bank balances of £430,911. Council believes that the Society has sufficient working capital for the next year. The abnormally high level of accounts receivable (£778.843} includes several legacies which were unpaid at the end of the year. Reserves The Council has continued with its poliry of setting aside designated reserves for specific new mission projects, investment opportunities and operational prudence. Note 11 of the financial statements details the movement on the reserve accounts for the year. The general fund free reserves a￿ held to ensure that the Society can sustain the cost of maintaining operations for a reasonable period of time. While expenditure is relatively evenly spread over the calendar year, the same cannot be said for donation incorne and receipt of legacies is by its nature unpredictable. In the event of income not reaching predicted levels. there is a need to demonstrate that the Society is able to meet the cost of maintaining essential operations either until p￿dIcted income is received or, when necessary, a reduction is made in expenditu￿. Council is aware of the high level of free reserves at the end of 2023. However, taking account of the exceptional value of legacies in 2023, ICS. Hel9ing people findjesus. Intercontinentsl Church Society Trustees Annual Report 2023 18 the anticipated deficit for 2024, the plans to purchase the leasehold of the Society's office in Coventry and the uncertain economic and financial environment, Council decided that reducing reserves at this time would be imprudent. The target for a rolling 3-year break even result before investment gains, although not achieved recently, is maintained and Council is continuing to investigate the options to make this realisable. Total designated reserves at year end stood at £943,29412022: £984,959). General fund free reserves amounted to £1,874,389 12022- £1,027,270) while restricted funds held for Chaplaincy work totalled £311,734 (2022: £225,037) and Endowment funds £882.969 (2022: £798,915}. The general fund free reserve at year end was the equivalent of 45 months, unrestricted normal outgoing charitable expenditure (2022: 30 months,) 2024 Financial plan and prospects Council plan that 2024 should be a year when we continue to rebuild our activities and look for new mission opportunities. Council have noted that we have an aging supporter base and that our rolling break-even objective is not being met. We are budgeting to use more of our reserves in new work and anticipate an operating deficit in 2024. Council is ready and prepared to invest the Society's reserves in sound new projects aimed at bringing the Good News to new people in new places as and when opportunities arise. ICS.. Helping peoplefind Jesus. Intercontinental Church Society Trustees Annual Report 2023 19 Council and Governance Council Council is well run with clarity about roles and responsibilities, holding the Mission Director to account for the work while making sure that they operdte to best practtce. The Charity Commission has recently issued a new set of videos on good governance with worksheets. These will now be used by the Council, each time they meet where a member of the Council will show the video and then reflect on it using the five-minute guide provided by the Charity Commission. We feel this is the best way to share the learning as well as keep current with the Charity Commission's best th practice. The Council has been very stable in 2023 which has been helpful in a busy 200 year. Council operates by having sub-groups. They are: Standing Committee meets between Council meetings, sets the Council agenda, and looks at urgent matters. Governance Group monitors ICS policies, procedures, and Council processes. Their agenda has a natural ebb and flow as issues develop. ICS has a healthy pattern of reflecting on its Governance as we draw on outside resources to better govern the Society. Steps have been taken to reduce the number of members on Council to make it a more efficient governing body. we have clear standing orders and a process of self-reflection. Conference Group plans and runs the ICS Conference. Resort Mission Group reviews and develops Resort Mission {Short-term Mi55ion). Futures Group spends time thinking about what might be and how we might be able to serve more effectively in the five years+ time frame. New Work Group reflects on opportunities that are brought to us to ensure that these fall within the remit and calling of ICS. Resort Mission Evaluation Group: This group ran in 2023 to review Resort Mission and to report to the November 2023 Council meeting with recommendations and reflections on the ministry undertaken. This concluded at the end of 2023. Several ICS Council member5 are part of each group and report back to the main Council. This flexible, agile structure allows u5 to dig into the detail at an appropriate level. Finally, former Council member David White, acts as the Secretariat to the Council, setting a Standard of how minutes should be produced so that those who come one, five or twenty-five years later can look back and understand what was decided and why. Something that is important for a Society that h35 such a diverse portfolio of ministry and properfies. Council Members, Responsibilities Council Members are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations. The annual report also contains the Directors, Report as required by Company Law. Company Law require5 Council Members to prepare financial Statements for each year. Under that law Council Members have elected to prepare the financial statements in accordance with United Kingdorn Generdlly Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under Company Law Council Members must not approve the financial statements unless they are satisfied that these give a true and frdir view of the state of affairs of the Company and of the income and expenditure of the Company for that period. In preparing these financial statements, Council Members are required to: IC5 Heloir.,3 JJ,; Intercontinental Church Society Trustees Annual Report 2023 jus. 20 select suitable accounting policies and apply them consistently. observe the methods and principles in the Charities SORP. make judgements and estimates that are reasonable and prudent. state whether applicable UK Accounting Standards have been followed, subjett to any material departures disclosed and explained in the Financial Statements. prepare the financial statements on a going concern basis unless it is inappropriate to assume that the acttvities of the Company will continue. Council Members are responsible for keeping adequate accounting ￿CordS that are sufficient to show and explain the Companvs transactions and 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 21K)6. They are also responsible for safeguarding the assets of the Companv and hence for taking reasonable steps for the prevention and detection of frdud and other irregularities. Council Members who held office at the date of approval of this annual report, as set out on page 25 each confirm that: as far as they were aware, there is no relevant audit information {infomiation required by the Company'5 Auditor5 in connection with preparing their report) of which the COmpan￿S Auditors are unaware: and as Council Members of the Company, they have taken all steps necessary to establish that the CoMpan￿S Auditors a￿ aware of that information. New Treasurer ICS has been blessed to have Chris Weller as Treasurer these last six years. Chris had the unique gift of having huge competence as well as vision and a desire to see things done well with the resources available. He has also been a joy to work with, bringing light and humour to the working relationships with team members. In the Council meeting he has always given a sense of confidence and clarity that has been appreciated. Chris achieved much in his time as Treasurer, and we are immensely grateful to him for his contribution and dedication. At the AGM in 2022. the Mission Director met Graham Sopp. As the conversation developed Graham kindly offered himself as next Treasurer of ICS. This allowed for an extended handover, and we are now delighted to have Graham in place. Graham brings a vast amount of experience and clarity of thought. We are enjoying getting to know him and working together as we manage and plan the financial structures and strategies. Graham's experience in the charity Sector means he is well equipped to offer insight and ideas as we look forward. For many organisations finding a Treasurer can be a challenge, ICS has been blessed with people coming forward with the right gifts at the right time to meet our needs. We thank the Lord for this. Chris Weller IC5. Helging op )c,': Intercontinental Church Society Tntstees Annual Report 2023 21 Funds held as Custodian Trustee on behalf of others Funds are held in the CBF Church of England Deposit Funds, and COIF Charities Investment Funds, in accounts separate from those of the SocieWs on behalf of two chaplaincies totalling £248,192 {2022: £226,005). Governance and Management Intercontinental Church Society {commonly known as ICS) operated through a charitable trust from the date of formation of tts oldest parent charity on 30 June 1823. The Society then transferred its operations to the Company on 11 September 1998. The Company was incorporated under the Companies Act 1985 as a Company Limited by Guarantee, and its governing instrument is its Memorandum and Articles of Association, last amended by a special resolution passed on 21 September 2013. Each member has undertaken to contribute a sum not exceeding EIO.00 on winding up as set out in Clause 8 of the Memorandum. The Society has a subsidiary charity of which on 19 March 2020 the Charity Commission appointed ICS as the sole corporate trustee, the charitable trust (The Colonial and Continental Church Society, formerly known as ICS Trust, charity number 1072584-1, fomierly 241111), and is the sole shareholder in Intercontinental Church Society (Nominees) Limited, both of which are the owners of number of propertTes used in the Society's work. The Board of Directors is known as the Council. The Council Members are 01￿CtOrS under Companies, Legislation and Trustees under Charity Law. The Council Members and the Honorary Treasurer are elected by the members; the Council additronally includes: The President who is a member of the Council ex-officio and appointed by the Council, and a maximum of two Co-opted Council Members who are appointed by the Council. One-third of the elected Council Members retire each year and are entitled to offer themselves for re-election. The key management personnel of the charity as listed on page 25 direct. control, run and operate the charity on a day-to-day basis. All Trustee Directors give of their time freely and no Trustee Director received any remuneration in the year. Details of Trustee Directors, expenses and related party transactions are disclosed in Note 5 to the financial statements. The salary of all staff is reviewed annually as part of the budgeting process. Each Council Member receives a comprehensive induction on election or appointment and is encouraged to become involved in the Society's activttres by serving on one or more of its executive and advisory sub-committees, promote the Society's interests through e.g. seeking to increase support for the Society's work and to rnaintain a prayerful interest in the chaplaincies of which the Society is patron. The Council is responsible for settrng strategi, overall policy. and budgets, and then delegates to the salaried staff the management of the Society. The senior rtaff advise and brief the Council and its sub-committees lone executive and two advisory) on strategy and policy, and regularly consult sub- committees for advice. The Council in 2023 had no observer to its rneetings. The Society receives no funding from the central resources of the Church of England, save for the valuable assistance provided by the Church of England in meeting CEFPS pension payments for priests in missionary service under the Vote 4 arrangements. ICS.. Helpjng peoplefind Jesus. Intercontinental Church Society Trustees Annual Report 2023 22 Public Benefit The Charity Trustees have cornplied with their duty to have due ￿gard to the guidance on public benefit published by the Charity Commission in exercising their powers or duties. The Society's achievements and activity, as detailed above, have benefitted the public in numerous ways. In the European Socations where our short-term mission took place, through the provision of resort chaplains and teams to pastorally care for, counsel and explain the Christian Gospel to holidaymakers. Through the distribution of Christian literature, the conducting of public worship and other open Christian meetings. the visitation of those unwell or bereaved, the conducting of memorial services for those who die while away on holiday, the provision and maintenance of church buildings in Wengen and Zermatt which are open daily during the seasons. Through the ownership of numerous church buildings. we provide and help maintain facilities used both for public Christian worship and wider community activities, and through owning or funding accommodation to enable the local ministry of ministers of religion. We use our network to find priests WTth cross-cultural skills to serve people from many economic. cultural, and religious backgrounds and lay people to a5SiSt in and expand English-language ministry. Through the provision of finance, prayer support and expertise we enable the pastoral and outreach ministries of the chaplaincies, as detailed above. In our role as an Evangelical Private Patronage Society combined with training and resources, we advance the Christian religion and contribute to the life and mission of the Church. Risk Review The Mission Director and Finance Manager regularly review the Risk Register. this is then reviewed by the Governance Group and finally in detail by the Council at the November meeting. Using the standard recommended formula, we calculate risk using likelihood and impact. Items are then marked in three categories, blue, amber or red. Currently the significant risks are: The loss of two or more staff members in a short period of time. The sudden departure of the Mission Director. The death or serious injury of a Mission Partner, volunteer. or staff worker. The dependence on limited income sources. Failure to renew our supporter base. A significant reduction in our investment portfolio. The emergence of Safeguarding issues within an ICS chaplaincy or chaplain. Problems with our property porthlio. While many of these risks have been red for some time, at the recent Council meeting it w35 deemed necessary that further steps should be taken to mitigate red risks and to reduce them to an amber status. This work is now in progress. The ICS Risk Management document continues to be a working document that is important to the good management of the Society. Safeguarding The Vice Chair of the Council, Mrs Ann Tyndall. and the Mission Director take responsibility ft)r Safeguarding. There have been no incidents made known to us in 2023. We continue to monitor and review our approach to safeguarding and take our responsibiltties very seriously. We thank Ann for her hard work, commitment, and diligence in supporting ICS in this area. ICS." Helping peoplefind Jesus. Intercontinentsl Church Society Trustees Annual Rewrt 2023 23 Statement of Fundraising Practice In accordance with the Charities {Protection and Social Investment) Act 2016. the ft)Ilowing outlines our fundraising prattice. ICS'S fundraising is built on values of honesty and transparency. We are extremely grateful to the individuals, trusts, churches. and other organisations who have donated funds to ICS. We invite offerings at events and services. We conduct an annual direct mail appeal and invite financial sUPPOrt on our website and in ICS publications. We recognise that some supporters may be in vulnerable circumstances, and we take care to serve them appropriately. We will never put anyone under pressure to make a gift. Our Privacy Policy is easily accessible on our website and there have been no complaints or criticisms during the year about our fundraising attivities. ICS is registered with the Fundraising Regulator, The independent regulator of charitable fundraising in England, Wales, and Northern Ireland. During 2023 we did not employ professional fvndraisers. Registered wtth FR CUNDRAlblNG REGULATOR Thanks, and In Memory We give thanks to God for the ICS supporters who passed away during 2023. They journeyed with us through the years, and we fondly remember their contribution. dedication, and service. We especially want to give thanks for their generosity as they remembered ICS in their wills. May they rest in peace in rise in glory. ICS.. frlelping peJJ,- fints Intercontinentsl Church SOc￿ty Trustees Annual Re￿)rt 2023 24 How we are structured Patrons: The Archbishop of Canterbury The Archbishop of the Province of Alexandria The Archbishop of York The Archbishop of Armagh The Bishop of London President: Vacant Council Members: The Revd L J Biggs (Resigned 27 June 2023) Mrs A C Tyndall (Resigned as Vice-chair 17 November 2023) The Revd M N Dale {Resigned 27June 20231 The Revd E Dumain (Appointed Vice-chair 17 November 20231 Mr C Gayle The Revd Dr S Hance Mr R A Hoyle The Rt Revd R C Jackson (Chair) The Revd K D Mentzel The Revd F O Olokose Mrs E D Skudder Mr G J Sopp (Treasurer) Mr C S Weller {Hon Treasurerl (Resigned 27 June 2023) The Revd Canon Dr G I Wilton {Resigned 27 June 2023) The Very Revd T Wright Key Management Personnel: ICS Council Members and the Mission Director (The Revd Canon R W Bromley) Company Secretary: The Revd Canon R W Bromley Solicitors Moore Barlow LLP Concord House 165 Church Street East WOKING GU216HJ Registered Auditors Jacob Cavenagh & Skeet 5 Robin Hood Lane su￿ON SM125W Principal Bankers Barclays Bank plc 100 Fenchurch Street LONDON EC3M 5JD Investment Advisers: CCLA Investment Management Ltd One Angel Lane LONDON EC4R 3AB Ruffer LLP 80 Victoria Street LONDON SWIE 5JL For and on behalf of the Council Unit 11 Ensign Business Centre Westwood Way Westwood Business Park COVENTRY CV4 8JA The Rt Revd Richard C Jackson Chairman of ICS Council 4 April 2024 ICS." Helping peoplefind Jesus. Intercontinentsl Church Society Trustees Annual Rewrt 2023 25 Independent auditorfs report to the members of Intercontinental Church Society Opinion We have audited the financial statements of Intercontinental Church Society {the 'charitable company,) for the year ended 31 December 2023 which comprise the Statement of Financial Activities, the Balance Sheet, the Statement of Cash Flows and the notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice). In our opinion the financial statements: give a true and fairview of the state of the charitable company's affairs as at 31 December 2023 and of its incoming resources and application of resour￿5 for the year then ended; have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and have been prepared in accordance with the requirements of the Companies Act 2006. Basis for opinion We conducted our audit in accordance WTth Intemational Standards on Audtting (UK) IISAS IUKII and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC'S Ethical Standard. and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Conclusions relating to going concern In auditing the financial statements, we have concluded that the Council Members, use of the going concern basis of accounting in the preparation of the financial statements is appropriate. Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, indtvidually or collectively, may c35t significant doubt on the charitable company's ability to continue as a going concern for a period of at least 12 months from when the financial statements are authorised for issue. Our responsibilities and the responsibilities of the Council Members with respect to going concern are described in the relevant secknons of this report. Other inforniation The other information comprises the information included in the annual report, including the Council Members, report. other than the financial statements and our auditor's report thereon. The Council Members are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and. except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so. consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material 26 Independent auditorfs report to the members of Intercontinental Church Society (continued) inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed. we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. Opinions on other matters prescribed by the Companies Act 2(K16 In our opinion, based on the work undertaken in the course of our audit: the information given in the Trustees, Report, which includes the Directors, Report prepared for the purposes of company law, for the financial year for which the financial statements are prepared is consistent with the financial statements; and the directors, report included within the Trustees, Report has been prepared in accordance with applicable legal reqU1￿Ments. Matters on which we are required to report by exception In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees, Report included with the Council mernber￿ report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion: adequate and proper accounting records have not been kept, or retums adequate for our audit have not been received from branches not visited by us- or the financial statements are not in agreement with the accounting records and returns; or certain disclosures of Council members, remuneration specified by law are not made; or we have not received all the infomation and explanations we require for our audit,- or the Council Members were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies exemptions in preparing the Council Members. report and from the requirement to prepare a strategic report. Responsibilities of Council Members As explained more fully in the Council Memberg responsibilities statement, the Council Members (who are also the directors of the charitable company for the purposes of company law) are responsible for the prepardtion of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material mi55tatement, whether due to fraud or error. In preparing the financial statements, the Council Members are responsible for assessing the charitable company's ability to continue as a going concern, disclosing. as applicable, matters related to going concern and using the going concern basis of accounting unless the Council Members either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so. Auditor's responsibilities for the audit of the financial statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's 27 Independent auditor's report to the members of Intercontinental Church Society (continued) report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAS (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. The extentto which our procedures are capable of detetting irregularities. including fraud is detailed below: Based on our understanding of the charitable company, we identified that the principal risks of non- compliance with laws and regulations related to employment and financial reporting legislation and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 21J)6 and the Charities Act 2011. We assessed the susceptibility of the charitable company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by making enquiries of management, consideringthe internal controls in place and discussion amongstthe engagementteam. We determined thatthe principal risks were related to the recognition of properties, management bias in accounting esttmates, presentation of separately disclosed items and management override of controls. In response to the risks identified we designed procedures which included, but were not limited to reviewing the existence and ownership of all properties held by the charitable company, identifying and te5tingjoumal entries, challenging significant accounting estimates, reviewing Council meeting minutes and evaluating the charitable compan￿5 internal controls. There are inherent limitations in the audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Material misstatements that arise due to fraud can be harder to detect than those that arise from error a5 they may involve deliberate concealment or collusion. A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: http://www.frc.org.uk/3uditorsresponsibilities. This description forms part of our auditor's report. Use of our report This report is made solely to the charitable company's members, as a body. in accordance with Chapter 3 of Part 16 of the Companies Act 2tMJ6 and regulations made underthat Act. Ouraudit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an auditors, report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and its members as a body, for our audit work, for this report, or for the opinions we have formed. Miriam Hickson FCA {Senior Statutory Auditor) for and on behalf of Jacob Cavenagh & Skeet Statutory Auditor Chartered Accountants 5 Robin Hood Lane Sutton, Surrey SM12SW Dated: 28 Statement of Financial Activities (including income and expenditure account) for the year ended 31 December 2023 Unrestricted Restricted Endowment Funds Funds Funds 2023 Total Funds 2022 Total Funds Note Income from: Donations and legacies Investments Charitable activities Other trading activities Other income 2{a) 2 Ibl 2(c) 2(d} 2{e) 1.247,973 68,612 16,337 1,705 3.536 1.338,163 255,428 3,863 1.503,401 72,475 16,337 1.705 3,536 1,597,454 487.851 65,913 11,705 732 4,814 Total 259,291 571,015 Expenditure on: Charitable activities Raising funds Total 3 lal 3{b) 508.662 1,099 509.761 172.595 681,257 1,099 682,356 608,956 1,581 610,537 172,595 Net (losses) l gains on investments (22,948) 84,054 61.106 1162,829) Net (expenditure) l income 805.454 86,696 84,054 976,204 (202,351) Transfers between funds li Net movement in funds 805,454 86.696 84.054 976,204 (202,351) Balances brought for¥vard l January 2023 Balance carried forward 31 December 2023 2,012,229 225,037 798.915 3,036,181 3,238,532 2.817,683 311,733 882,969 4,012.385 3,036,181 29 Balance Sheet at 31 December 2023 2023 2022 Note Fixed assets Tangible fixed assets Investments 135,825 2,673.664 140,316 2,662,558 2.809,489 2,802,874 Current assets Debtors Cash held with Investment Managers Cash at bank and in hand 778,843 42,883 430,911 1,252,637 132,713 41,576 96,151 270,440 Creditors: falling due within one year 49,741 37,133 Net current assets 1.202,896 233,307 Net assets io 4.012.385 3,036,181 Income funds Unrestricted funds General free resenrfes (including revaluation reserve £427,674 (2022: £468,653} Designated li 1,874.389 1,027,270 943,294 984,959 2,817,683 2,012,229 Restricted funds li 311.733 225,037 Capital funds Endowments (including revaluation reserve £364,297 (2022: £280,243)) li 882.969 798,915 Total Charity funds 4,012,385 3,036,181 The accounts were approved by the Council on 4 April 2024 The Rt Revd R C Jackson Chair Company Number 3630342 MrGJSopp Honorary Treasurer 30 Statement of cash flows For the year ended 31 December 2023 2023 2022 Cash flows from operating activities: Net cash provided by (used in) operating acfivtties Note (a) 213,592 (144,049) Returns on investments and servicing of finance Investment income 72,475 65,913 72,475 65,913 Capital expenditure and income Payments to acquire investments Receipts from sale of investments (973) 76,946 50,000 50,000 75,973 Increase l (Decrease) in cash Note (bl 336,067 (2,163) (a) Reconciliation of (expenditure) / income to net Cash flow from operdting activities Net (expenditure) / income for the period {as per the 976.204 statement of financial activities) Adjustments for- Depreciation charges Investment income Losses/lGains) on investments Ilncreasel/Decrease in debtors Increase in creditors Net cash provided by l (used in) operating activities (202,351) 4.491 (72.475) (61,106) (646,130) 12,608 213,592 4,491 (65,913) 162,829 (50. 742) 7,637 (144,049) (b) Analysis of changes in cash balances Atl" January 2023 96,151 41,576 At 31" December 2023 430,911 42,883 Cash flows Cash at bank and in hand Cash held with Investment Managers 334,760 1,307 Totsl 137,727 336,067 473,794 31 Notes to the financial statements for the year ended 31 December 2023 l Accounting policies The principal accounting policies adopted, judgements and key sources of estimation uncertainty in the preparation of the financial statements are as follows: (a) Accounting convention The financial statements have been prepared under the Companies Act 2006 and in accordance with the Charities Statement of Recommended Practice (Charities SORP 2019 FRS 1021, Financial Reporting Standard 102 {FR51021 and the Chartties Act 2011. The financial statements are drdwn up on the historical cost basis of accounting. as modified by the revaluation of investments. These 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 charity meets the definition of a public benefit entity under FRS 102. is a company registered in England and Wales (No. 36303421 and a registered charity (No. 1072584). The registered office is at Unit 11, Ensign Business Centre, Westwood Way, Westwood Business Park, Coventry, CV4 8JA. The financial statements contain information about Intercontinental Church Society asan individual charity and do not contain consolidated financial inft)rmation as the parent of a group on the grounds of immateriality. (b) Tangible Fixed assets Tangible fixed assets are stated at cost less depreciation. For two freehold properties owned by the charity no reliable Tnformation on the historic cost or value when donated is available for these properknes. The Trustees believe that such inforniation cannot be obtained at a cost commensurate with the benefit to the usersof these accounts and to the charity due to the factthat rt is impractical to obtain these values as the Socievs record5 are incomplete and as such reliable cost information is not to hand. therefore the trustees believe the costs involved in clarifying these values will be prohibitive. The Trustees have also considered obtaining a current valuation for these properties and have concluded that this cost is not justified by the usefulness of the information to the users of the accounts and to the charity for its own stewardship purposes. For these reasons these freehold properttes are shown at nil value in the financial statements. Where cost information is available for two other overseas freehold properties the Trustees have estimated that the acquisition costs is split equally between land and buildings. The land element is not dep￿cIated, with buildings being depreciated over 50 years, as are the two Swiss apartments owned by the Society. Equipment costing under £l,IXK) is now wrÈtten off in the year of acquisition. Depreciation is provided on tangible fixed assets at rates calculated to write off the cost orvaluation of each asset over its expected useful life as follows- Buildings- over 50 years 32 Notes to the financial statements for the year ended 31 December 2023 (continued) l Accounting policies (continued) (c) Heritage assets Heritage assets comprise cathedrals, historic churches and other integral buildings where the contribution to knowledge and culture is ancillary to faith and other purposes. No reliable information on the historic cost or value when donated is available for these properties. The Trustees believe that such information cannot be obtained at a c05t commensurate with the benefit to the users of the accounts and to the charity due to the fact that it is impractÈcal to obtain these values as in some instances the Socie￿5 recordswere destroyed in the Blitz in 1941. In other cases properties were acquired in the 1800,5 with the Soctevs records being incomplete and in other instances reliable cost information is not to hand, therefore the costs involved in clarifying these costs are prohibitive. The Trustees have also considered obtaining a current valuation for these properties and have concluded that this cost is not jusknfied by the usefulness of the information to the users of the accounts and to the charity for its own stewardship purposes. For these reasons heritage assets are shown at a nil value in the financial statements. (d) Fixed Asset Investments Assets held for investment purposes are carried at fair value. which is bid price for quoted investments. Movements in fair Wdlue are shown as unrealised gains or losses in the Statement of Financial Activities. (e) Income All income is recognised once the charity has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be reliably measured. (11 Annual subscriptions are accounted for as income in the year receivable. (21 Donations, including contributions through parishes, are accounted for strictly on a receivable basis. Income tax recoverable in respect of Gift-Aided donations is accounted for on an accruals basis. Gifts in kind are valued at estimated open market value at the date of the gift in the case of assets for retention or consumption, or at the value to the charity in the case of donated services or facilities. The time donated by general volunteers is not recognised in the financial statements but their significant contribution is discussed in the annual report. (31 Income from investments is accounted for on the basis of the due and payable dates. (4} Contributions, including donations in respect of permanent and resort chaplaincies, are accounted for on a receivable basis. {5} The net proceeds of sales of church properties are credited to the General Fund on cash received basis. {6} Legacies are accounted for on a receivable basis. which is when the charity becomes entitled to receipt and the amount can be reliably quantified. If) Expenditure Expenditure 15 recognized as soon as an oufflow of economic benefit is probable and that settlement will be required and the amount of the obligation can be measured reliably. All expenditure is accounted for on an accruals basis. 33 Notes to the financial ststements for the year ended 31 L)ecember 2023 (continued) l Accounting policies (continued) Grants are recognized as commitments when awarded; specific funds are then allocated to a 'new work, designated fund. Grants and donations are accounted for as expenditure when paid over, or when the charity has a binding obligation to pay. Functional clGssificaiion 'Charitable activttses. comprises all expenditure directly related to furthering the object of the charity. 'Raising fvnds. comprises the costs actually incurred in inducing others to make voluntary gifts to the Society, the costs of trading, associated costs, and cost of good5 sold. Investment management fees are no longer incurred. Natural classification 'New mission worv comprises grants and direct expenses related to new mission opportunities. 'Ongoing mission work, covers direct expenditure incurred in relation to resort and permanent chaplaincies and the payment over of donations received for work in those chaplaincies. Staff and support costs have not been apportioned between new and continuing mission work nor between unrestricted and restricted funds. The Trustees consider that such apportionment is an unnecessary exercise which adds no value to the understanding of the financial statements. Where identifiable and applicable, direct expenses are charged to restricted funds. Irrecoverable VAT is charged against the category of expenditure from which it was incurred. (g) Debtor5 Income tax recoverable and other debtors a￿ included at the settlement amount due. Prepayments are valued at the amount prepaid. {h) Cash at bank and in hand and cash held with Investment Managers This includes cash and short term highly liquid investments with a short maturity of three months or le55 from the date of opening the deposwt. (i) Creditors and provisions Creditor5 and provisions are recognised where the charity has a present obligation arising from a past event that will probably result in the trdnsfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are recognised at their settlement amount. ti) Financial instruments The charity only has financial assets and liabiltties 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. 34 Notes to the financial statements for the year ended 31 December 2023 (continued) l Accounting policies {continued) (k) Pensions The charity contributes to defined contribution pension schemes, the assets of which are held separately from those of the charity. Contributions are charged to expenditure on an accruals basis. (l) Rates of exchange Foreign currency balances are trdnslated into sterling atthe rates of exchange prevailing at the year end. Exchange differences on conversion arising from day-to-day transactions are dealt with in the Statement of Financial Affairs. (m) Operating leases Renta15 payable under operating leases are charged to the Statement of Financial Activities in the period to which they relate. (n) Going concern The Trustees believe that there are no material uncertainties aboutthe charity's ability to continue. (o} Critical accounting estimates and judgements In the application of the charity's accounting policies, the Trustees are required to make judgements, estimates and a55umptions 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 estimate5. The estimates and underlying assumptions a￿ 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. 35 Notes to the financial statements for the year ended 31 December 2023 (continued) 2 Income 2023 Unrestricted Restricted Endowment Total (a} Donations and legacies Subscriptions and donations Donations from churches Donations from chaplaincies Resort mission collections Legacie5 receivable 180.785 4.118 22,826 10,048 1,030,196 1,247,973 177,238 3.190 358,023 7,308 22,826 10,048 1.105.196 1,503,401 75,(KlO 255,428 {b) Investments UK sourced Overseas sourced 68,612 3,863 72,475 68,612 3,863 72,475 Ic) Charitable activities Chaplains, conference Idl Other trading activities Greeting card/booklet sales le} Other income Receipts from stamp donations Sundry income 16.337 16.337 1.705 1,705 745 2,791 3,536 1,338,163 745 2,791 3,536 1,597,454 TOTAL INCOME 259.291 2022 Unrestrirted Restrirted Endowment Totol (al Donations and legacies Subscriptions and donations Donations from churches Donations from chaplaincies Resort mission collections Legacies receivable 132,022 4,579 34,850 13,877 103.080 288,408 196,618 2,825 328, 640 7,404 34,850 13,877 103,080 487,851 199,443 {b) Investment income UK sourced Overseas sourced 64,519 1.394 65,913 64,519 1,394 65,913 Ic} Charitable activities Chaplains, conference Idl Other trading activities Greeting card sales le} Other income Receipts from stamp donations Sundry income 11,705 11,705 732 732 755 4.059 4.814 370,178 755 4,059 4,814 571,015 TOTAL INCOME 2￿,837 36 Notes to the financial ststements for the year ended 31 December 2023 (continued) 3 Expenditure 2023 Restricted 2022 Unrestrirted Restrirted (a) Charitable activities Unrestricted Totsl Total New Mission work Izmir Kortrijk Corfu Grenoble Kyiv lo,￿1 io.ooi 2,053 6.673 10,422 1,750 30.899 12,001 12,001 2,024 4,308 2,053 6,673 10,422 1.750 20.898 2,024 4,308 iO,LK)i 6,332 12,001 18,333 Ongoing Mission work Permanent chaplaincies Chaplains Conference Resort missions 12,611 22,967 26,203 61,781 137,014 149.625 22,967 25,580 51,783 162.594 224,375 8,942 23,345 150,253 159,195 23,345 33.032 33,032 183,285 215,572 32,287 Staff & sUPPOrt costs Staff Salaries National insurance Pension contributions Other staff costs 224.095 16.960 30,339 8,114 279,508 224.095 16.960 30339 8,114 279508 207,407 13,554 26,094 7,698 254, 753 207,407 13,554 26,094 7,698 254, 753 Support costs Premise5 Travel Communications Governance Other support costs 23,295 20.676 45,952 24,212 32,340 425,983 23,295 20,676 45,952 24,212 32339 425,983 32.399 16,745 31, 771 12,543 26,840 375,051 32,399 16,745 31,771 12,543 26,840 375,051 Total charitable activities 508,662 172.595 681257 413,670 195.286 608,956 (b) Raising funds Fund raising costs 1,581 1,581 1,581 1,581 1,099 TOTAL EXPENDITURE 509.761 172,595 682.356 415,251 195,286 610,537 37 Notes to the financial ststements for the year ended 31 December 2023 (continued) 4 Net Income (Expenditure) 2023 2022 This is stated after charging: Auditors, remuneration for audit services Auditors, remuneration for other services Depreciation Operating lease rentals- land and buildings Operating lease rentals- other equipment Exchange {gainsl/losses 8,160 2.002 4,491 iO,(M)O 3.025 61.106 7,440 2,287 4,491 10,000 1,387 (418) 5 Staff Costs and Council Members, expenses 2023- No. 2022 - No. The average number of employees during the year was: Total staff emolument5 for the year were as set out in Note 3. One employee received remuneration of £60,CK)O to £70,0￿ in the year 2023 {2022." none). The total employee benefits of the key management personnel of the charwty as listed on page 23 were £78,742 (2022.. £71,982). No honorarTum were paid to any Council Members {2022.- none). Travel expenses of £2,465 (2022.. £1,965) were reimbursed to 9 (2022.'12) Council Members in the year. 6 Fixed Assets Heritage assets Swiss copropriété apartments Freehold property Totsl Cost At l January 2023 and 31 December 2023 192,475 85,084 277,559 Depreciation At l January 2023 Charge for the year At 31 December 2023 108,810 3.849 112,659 28,433 642 29,075 137,243 4,491 141,734 Net book value At 31 December 2022 At 31 December 2023 83,665 79.816 56,651 56,009 140,316 135,825 The charity beneficiallyowns a freehold property used as Chaplain's accommodation in Floriac (France) which is 80Yo owned by the Society. The charity also beneficially owns a freehold property used 35 Chaplain's accommodation in Blonay ISwitzerland}. The charity also owns two copropriete apartments in Wengen and Zermatt (Switzerland). These four properties are valued in the above table. The charity also owns the following freehold properties which are Shown at nil value-. France: Chaplaincy House, Holy Trinity, Maisons-Laffitte Chaplaincy House, St, Mark's, Versailles 38 Notes to the financial statements for the year ended 31 December 2023 (continued) 6 Fixed Assets (continued) The charity beneficially owns the following heritage assets which are shown at nil value: Belgium: Holy Trinity, Brussels France: Holy Trinity, Cannes St. Peter's, Chantilly Holy Trinity, Maisons-Laffitte St. Michael's, Paris St. Mark's. Versailles Netherlands: St. Mary s, Rotterdam Holy Trinity, Utrecht St. George's, Barcelona St. Peter's, Chateau-d'oex All Saints,, Vevey St. Bernard's, Wengen St. Peter's. Zermatt Spain: Switterland: 7 Investments 2023 2023 2023 2022 Unrestricted Endowment Totsl Total Quoted investments Brought forward Addition5 Disposals Net realised gains 1,864.424 798.134 2,662,558 2,901,360 973 (76.946) 28,075 (50.(X)O) 18,031 (50,000) 18,031 1.832,455 (40.879) 798.134 2,6￿,589 2,853,462 Net unrealised Ilosses)/gains Quoted investments at fair value carried forward Quoted investments at cost carried forward 84,054 43,075 (190,904) 1.791,476 882.188 2.673,664 2,662,558 1.363,801 SI7￿91 1,881,692 1,913,661 8 Debtors 2023 2022 Income tax recoverable Debtors and accrued income Prepayments 2,754 755.628 20,461 24,629 95,125 12,959 778,843 132,713 9 Creditors 2023 2022 Other taxation and social security Accruals and deferred income 5,559 44,182 49.741 4.892 32,241 37,133 39 Notes to the financial statements for the year ended 31 December 2023 (continued) 10 Net Assets The balance5 carried fonvard on the various funds held are as follows: Tangible fixed assets Current assets less liabilities Investments Totsl 2023 Unrestricted Generdl free funds Designated funds Restricted funds Endowments 984,007 807.469 890.382 1,874,389 943,294 311,733 882,969 4,012,385 135,825 311.733 781 882.188 2,673.664 135,825 1.202.896 Tangible fixed assets Current Ossets less liabilities Investments Total 2022 Unrestrirted Generalfreefvnds Designatedfunds Restrirtedfunds Endowments 1,019. 780 844,643 8,270 1,027,270 984,959 225,037 798,915 3,036,181 140,316 225,037 780 798,135 2,662,558 140.316 233,307 40 Notes to the financial statements for the year ended 31 December 2023 (continued) 11 Funds 2023 Balance brought forward Invest- ment gains Balance carried forward Income (Expenses) Trdnsfers Unrestricted funds General free fund 1,027,270 1.338,163 (495.535) 27,439 (22,948) 1,874,389 Designated funds Fixed asset reserve Operational reserve Chaplaincies reserve Funds set aside for new work 200-Year Anniversary Reserve Investment diminution reserde Property reserve 140,316 (4,491) 135,825 150,IJ(KI 41.655 21KJ,000 152,988 300.000 984,959 150.000 27,429 200,000 130,040 300,000 943,294 (14,226) (22,948) (14.226) (27.439) Total Unrestrirted funds 2,012.229 1.338.163 (509,761) (22,948) 2.817,683 Restricted funds Mission partnerships- Europe Mission partnerships- N Africa Wengen- St Bernards & Flat Zermatt - St Peter's & Flat Chaplaincy work 13.553 44,480 11,201 44,781 111,022 225,037 3.372 11.167 6,2 81,094 157.458 259,291 (lo,￿1) {10,581) (14.727) {10.653) (126,633) (172,594) 6,924 45,066 2,674 115.222 141,847 311,733 Endowment funds 798,915 84,054 882,969 2022 Unrestrittedfunds Generalfree fund Designotedfunds Fixed osset reserve Operational reserve Chaplaincies reserve Funds set asidefor new work Loons reserve 200-Yeor Anniversary Reserve Investment diminution reserve Property reserve 1,065,829 370,178 (413,228) 51.503 (47,012) 1,027,270 144.807 (4,491) 140,316 150,LXYO 43,678 2(KI,￿o 150,000 41,655 (2.023) (200,CiXIJ 2(￿.000 (47,012) 200,000 152,988 300,000 984,959 2(￿.(KI0 3￿,(￿)0 1.038.485 (2,023) {51,503) (415,251 J Total Unrestrirtedfunds Restrictedfunds Mission partnerships - Europe Mission partnership5 - N Africa St Bernard's, Wengen St Peter s, Zermott Chaplaincy work 2,104,314 370,178 (47,012) 2,012,229 21,893 38,462 25.623 38,194 95,314 219,486 3,661 12,325 6,130 19.067 159,654 2(￿,837 (12,001) (6,307) (20,552) (12,480) {143.946J (195.286) 13,553 44,480 11,201 44, 781 111,022 225,037 Endowmentfunds 914,732 (115,817) 798,915 41 Notes to the financial statements for the year ended 31 December 2023 (continued) 11 Funds (continued) In line with its reserves policy the Society has decided to designate funds for the following specific purposes: Fixed asset reserve: to cover the investment in fixed assets as valued in the annual financial statements. Operational reserve- to provide for expected commitments and planned events over the ensuing years where specific funding is expected but not guaranteed. Chaplaincies reserve: to ensure the continuing function of existing work for 12 months. Funds set aside for new work: to ensure that, once a new work has been approved, appropriate funding is set aside. 200-Year Anniversary Reserve: to ensure funds are available to support and extend existing work. Investment diminution reserve- to set aside fund5 to prevent free resenies being severely diminished by any slump in the market value of the investment portfolio. Property reserve: to ensure that ICS has reserves available to meet any unforeseen, or emergency work. which needs to be undertaken on one of the properties that it owns. The General fund includes a revaluation reserve of £427,674 (2022.'£468,653) representing unrealised increases in the value of investments. Restrirted funds Mission partnerships." these are funds received towards the costs of new mission work and the expenditure of these funds on these initiatives. St. Bernard's Wengen: this fund is for the maintenance/upkeep of the church building, apartment and ministry in Wengen. St. Peterfs Zermatt: this fund is for the maintenance/upkeep of the church building, apartment and ministry in Zermatt. Chaplaincy work- these are funds received expressly in supportof specified chaplaincies, work and equivalent sums are passed on to them.# No fundraising and staff 5UPPOrt costs have been apportioned to Restritted funds. All income received for restricted funds is allo(Jted to specwfic mission and chaplaincy work. Endowment funds represent capital gifts to the Society and includes a revaluation reserve of £364,297 (2022.. £280,243). Income arising from these investments is used for general purposes. 42 Notes to the financial statements for the year ended 31 December 2023 (continued) 12 Commitments The Society has financial commitments in respect of non-cancellable operating leases of land and buildings and of equipment. The total future minimum payments under non-cancellable operation leases are payable: 2023 2022 Within one year Between l and S years 3,635 4,410 8.045 11,932 2,936 14.868 The operating lease charges forthe year were: Hire of equipment Rental 3,025 10,000 13,025 1,388 10,000 11,388 13 Registered holder Two propertres are registered in the SoCie￿s name. Two church propertres are registered in the name of Intercontinental Church Society INominees} Ltd. la wholly owned subsidiary}. The remainder are registered in the name of The Colonial and Continental Church Society la subsidiary charity)- 14 Funds held as custodian trustee Funds are held in the CBF Church of England Deposit funds, and COIF investment funds, in accounts separate from those of the Society on behalf of two chaplaincies totalling £248.192 {2022.' £226,005}. The balances at 31 December are set out below: 2023 COIF funds 2022 COIFfunds Totalfunds CBF Funds Total fvnds CBF Funds Holy Trinity, Cannes St. Michael's, Paris 7.413 7.413 7,088 240.779 240,779 218,917 218,917 7,413 240,779 248,192 7,088 218,917 226,005 15 Tax ststus The Society is registered with the Charity Commissioners {No.1072584) as a charity and is exempt from taxation on its charitable activities. 16 Legal ststus of the Society The Society is a company limited by guarantee and has no share capital. The liability of each member in the event of winding up is limited to £10. 17 Related party transactions There We￿ no related party transactÈons except as disclosed in Note 5. 43