BETEL OF BRITAIN
Report and Financial Statements
Year ended 31[st] December 2020
Charity Numbers: 1081462 & SC045808 Company Number: 03998028
Reference and Administrative Information
Charity numbers: 1081462 & SC045808
Company registration number: 03998028
Registered Office and operational address: Windmill House Weatheroak Hill Alvechurch Birmingham B48 7EA Trustees: Kent Martin Elliott Tepper Mary Alice Martin John Bagg (from March 2020) Rachel Hickson (from May 2020) Yvonne Mosquito (from April 2020) Paul Reid (from April 2020) Secretary: Karen Shirazi Senior Staff: Kent and Mary Alice Martin The Regional Managers of Birmingham, Derby, Manchester, Motherwell, Nottingham, and Hexham Auditors: Just Audit & Assurance Ltd. Chartered Accountants and Registered Auditors 37 Market Square Witney Oxfordshire, OX28 6RE Bankers: HSBC plc 26 Broad Street Reading Berkshire RG1 2BU Solicitors: Square One Law LLP Anson House Fleming Business Centre Burdon Terrace Newcastle upon Tyne NE2 3AE
Contents
| Page | |
|---|---|
| Trustees’ Report | 1 - 8 |
| Independent Auditors’ Report to the Members | 9 -11 |
| Statement of Financial Activities | 12 |
| Balance Sheet | 13 |
| Statement of Cash Flows | 14 |
| Notes to the Financial Statements | 15 – 28 |
Betel of Britain Trustees Report for 2020
The trustees are pleased to give their report for the year ending 31st December 2020.
2020 was a year of challenges, opportunities, perseverance and relationship building. The Betel vision of helping more of the lost and broken in the UK continues in the midst of what has been an exceptional season around the world. Our trustees are truly grateful for the hard work and dedication of our longer serving men and women, volunteers, managers and directors as they help our residents seek a fresh start in life. Our sincere thanks are also due to the individuals, landlords, churches and companies who have provided financial donations, rent reliefs or gifts-in-kind, particularly during what has been such a tough season for everybody. This support has helped considerably during what would otherwise have been an extremely difficult season. The hard work of our residents, together with these donations, allow us to provide all our services free of charge, and we continue to receive no government funds apart from “gift aid” on some donations and the Covid-19 grants.
A total of 593 men and women lived in the Betel community during 2020 (2019 – 859). This number includes both new and existing residents. The reduction in numbers is largely due to the impact of the Covid-19 lockdown and restrictions, trying to navigate and help as many new residents as possible whilst protecting our current residents against a potential outbreak and an increasing number of people staying on for longer, which speaks volumes about how our residents see our community as providing effective long-term help and support to those struggling to overcome addictions. We are well aware how much being in a community has helped our men and women during such a difficult season.
In the rest of the report, we seek to show how Betel is fulfilling its charitable objects and the impact that it is making to various sections of society.
Strategic Report
Plans for future periods
Our strategic decision in 2015 to reduce the number of shops, improve our internet furniture business and increase gardening and, where possible, cafés went a considerable way to help reduce expenses during lockdown. Our increased efforts in collecting and selling donated furniture resulted in a better ratio of donated sales to overall sales in our shops this year. Commercial Property Law training provided around 4 years ago has really helped centre directors think through implications both before and after leaving rented properties and agreeing exit strategies with landlords, saving both considerable cost and time.
The Anchor Point Centre in Aston continues to be developed out, largely due to a number of large grants received during 2020. We are so grateful for this support which has enabled us to continue building during the pandemic. We will be partially opening the headquarters in autumn 2021, opening a new Rising Café and operating a catering business from this facility as well as starting our Infinite Arts programmes investing in community engagement. In addition, we will be moving our administration offices across which will greatly help provide more space for the residents at Windmill House.
We expect to open a new interim church meeting area at Anchor Point at the same time as the new café.
The Rising Café business in Coventry closed in March 2020. Whilst we had planned to return, Cathedral plan changes made that untenable, and we sadly had to make the decision to close permanently. Customer response to the news showed just how much of a positive impact we had on the Coventry area.
Grant funding for a Food Services Manager enabled us to continue persevering during lockdown and keep plans on track in terms of the Rising Café at Anchor Point.
The new men’s house and couples’ accommodation at Manna Farm in Nottingham has progressed considerably due to the extremely generous support from a couple whose lives have been positively impacted by Betel. This really helped with expertise and to speed up the development to such a degree that we will have an extremely cost efficient building which should be ready to start accepting new men before Autumn 2021.
Covid-19 – Since our last report, whilst uncertainty continued throughout 2020, Betel as an organisation continued to keep abreast of government guidelines across England, Scotland and Wales. The trustees are truly grateful for all the teamwork and diligence shown during this season to protect the community as much as possible, whilst trying to help and support residents in their recovery. The trustees were regularly informed of the impact on our community as well as finances. Encouragingly, we were able to continue fully supporting those in the Betel communities throughout the lockdown period. We worked hard to ensure testing was
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carried out where required and to get vaccinations as soon as we could before the national roll-out for those longer serving “staff” within the community who were classed as eligible. We are now ensuring that those who are eligible to receive the vaccine and agree to it receive it as soon as possible. Whilst there was an outbreak in at our Hexham centre in December 2020 affecting 29 people and in our Birmingham centre in January affecting 42 people, we liaised closely with Public Health and the relevant local authority to manage the situations well and decisively looking out for the welfare of our men and women. We continue to review matters regularly at each stage of government guidance, changing to ensure the safety and wellbeing of our residents. Whilst we publically live-streamed talks for Friday night and Sunday morning meetings with great success for some of 2020, meetings have now returned to being within the relevant communities, whilst complying with Covid-19 guidelines.
Objectives, Activities and Public Benefit
A summary of our objectives is as follows:
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a) The advancement of the Christian Faith.
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b) The relief of persons who are in condition of need, hardship or distress or who are aged or sick.
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c) The restoration of persons who suffer from the effects of drug, alcohol or substance abuse, gambling and other addictions or who are homeless, particularly through the provision of accommodation and therapeutic work.
Betel’s mission is to help restore homeless and drug and alcohol-dependent people to productive, independent lifestyles and assist them to rebuild their family relationships through work-as-a-therapy and the long term experience of a stable, ordered life in one of our homes. Some new residents have never experienced the necessary discipline of a working day and many lived chaotic lifestyles which revolved around drugs or alcohol. People are referred to us from many sources and some people refer themselves.
We seek to help disadvantaged and marginalised men and women; they come from a wide variety of backgrounds including those who are homeless or of no fixed abode, unemployed, long term drug or alcohol dependent, ex-offenders, with or without religious faith and of various ethnic backgrounds. Alcohol and drug addiction in the UK is a serious problem, blighting many lives. Our aim is to provide more peer-led caring communities throughout the UK where people can be helped.
To achieve these objectives we will promote residents who show signs of increasing stability by offering them additional responsibilities. They may become “responsibles”, therapeutic work managers or house leaders. They can then lead new centres as these become available. We also want to increase our main sources of income (second-hand furniture shops, furniture restoration, gardening & cafés) by further therapeutic work development and by research into new work ventures. For residents, this work builds genuine self-esteem, a work ethic and other employable skills. We want to involve more volunteers and seek the help of more charitable resources.
Public Benefit: Betel's work and services are available free of charge to all members of the public except where ongoing mental illness may provide a safeguarding risk to our community or where the resident will not, or cannot, cooperate within our community. All of Betel's therapeutic income is used for the free provision of our services, and all our income is used solely for our charitable purposes. Currently, our only employed staffs are a finance assistant, a food service manager, a mechanic and 3 part-time book-keepers.
Achievements and Performance
In 2020, the weekly average number of residents decreased to 266. This reduction was directly due to the Covid-19 restrictions preventing us from being able to take people for several months and, when lockdown was lifted slightly, not being able to take in people as quickly as previously to comply with government guidance. Whilst these restrictions have lifted considerably, and the majority of our community are vaccinated, whilst regularly taking in new residents now, it is still at a slower pace.
To set this in context the figures for the last eleven years are shown.
| 2010 | – | 192 | 2014 | – | 262 | 2018 | - | 319 |
|---|---|---|---|---|---|---|---|---|
| 2011 | – | 229 | 2015 | – | 277 | 2019 | - | 309 |
| 2012 | – | 244 | 2016 | – | 280 | 2020 | - | 266 |
| 2013 | – | 252 | 2017 | – | 302 |
Our ability to provide an environment to enable our residents staying with us to learn new life and behavioural skills, self-control, trust and self-respect gives them an opportunity to rebuild their lives and family relationships.
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A slightly more detailed overview of the 2020 figures is as follows. A total of 593 men and women lived in Betel UK communities during 2020. The average age of new entries was 36 years. 36% had abused substances for 10 plus years, and an additional 30% for more than 20 years. At least 51% had criminal records, and 45% were homeless or living in unstable conditions prior to entry. 33% of individuals stay in Betel for six months to over one year (post detox). From 1996 to 2020 8,389 individuals have entered into a Betel UK centre. There have been a total of 12,890 entries which includes multiple stays by some of those individuals.
Of the 8,389 individuals who entered Betel UK from 1996-2020, 1,175 were women. There has been a positive upward trend towards helping more women over the years, as shown clearly by the table below:
Number of Individual Women who entered Betel in 5 year increments: 1996-2000 31 2001-2005 197 2006-2010 224 2011-2015 322 2016-2020 400
Betel of Britain continues to play a significant role in helping to tackle the escalating problem of substance abuse in the UK. Our work results in a significant reduction in crime and antisocial behaviour, and in the direct reduction in the numbers of homeless people and their hardship and the social problems which may be attributed to them. It is estimated that we have saved the government over £160 million in various areas including healthcare, criminal justice costs and benefits over the 25 years of our charitable activity, and we receive no statutory benefits.
During 2020, the Rising Cafés in Lincoln and Hexham and the Nook and Cranny Café in Birmingham continued to provide a valuable opportunity for our residents to learn new skills including catering and hospitality. They also demonstrate a standard of excellence amongst our men and women in craftsmanship, interior design and event management. Public support continues to grow wherever the Cafés are located.
Training:
There is a variety of training provided across the centres including first aid, leadership, manual handling, health and safety, food hygiene and safeguarding.
Residents are continuing to receive training in dramatic arts at our Birmingham centre which is really developing confidence and teamwork.
Music, Arts and Creative Development:
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Music lessons for residents – including additional training for our in-house musicians and expansion of the Betel choir.
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Our social media team have really been expanding their skills during the pandemic which has led to an increased number of videos and an increasing profile on social media.
Betel’s Impact
Whilst not as many events were able to be held in 2020 as we would have liked, the vital element of peer led mentoring in a residential community environment meant that we were able to continue a large amount of our valuable work, as set out below.
Building community, impacting society: Our hope in envisioning our men and women to fully realise their potential and then serve others to pass that hope on continues to be the foundation on which Betel progresses. The by-product of this impacts the wider community through lives transformed.
Supporting Family Restoration through Court Proceedings: We seek to help support our men and women in restoring family relationship as much as possible. That has sometimes taken years. On a number of occasions this has also included supporting our residents where court proceedings were involved. As such, we are looking into the possibility of arranging legal training for our centre directors and some supervisors to assist their understanding of court procedures, protocols and timescales. We have found that such support has really helped people to persevere in their recovery whilst engaging well with the court and other parties for the sake of their children.
Internship Training Programme: 8 interns (9 in 2019) joined the Betel of Britain Internship programme in 2020; one has stayed on longer-term. Strong relationships with a number of interns continue to be maintained.
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Special conferences and events were limited but much support for centre directors went on line. The Restoring the Foundations sessions continued to be held where possible to continue ministering to and mentoring our men and women, with extremely positive feedback and results.
Women’s Retreat: A retreat for Betel ladies was held in Nottingham in March 2020 (just prior to lockdown). The lack of this retreat in 2021 was keenly felt amongst our women as it was a great way for the women across such a wide range of centres to build relationship and unity across the increasing number of women in Betel. We are looking forward to hopefully re-instating this in 2022.
Church Relationships and Wycliffe Hall Visit: Whilst not being able to speak at churches or receive mission’s trip, we are starting to receive people for visits in July 2021 taking the appropriate caution. We continue to build on church relationships as much as possible and been so grateful for the support and encouragement.
Criminal Justice Sector Impact: Whilst prison visits were stopped in 2020, we continued to provide information to prison services about the help we could provide people on release and continued to take in people being released from prison. We continued to work with the Criminal Justice Sector where possible and are preparing to return to sharing in prisons as soon as we can.
Outreach: Whilst our outreach was restricted by Covid-19, our outreach teams were continuing to encourage those lost and broken whenever possible. We having been maintaining links with other homeless organisations to work together as well as possible but are committed to building on this further in 2021.
Wider community involvement and impact:
Carol singing – whilst the number of our venues reduced by around 60% we were grateful for those councils and organisations who were willing to host us, with the relevant Covid-19 measures in place. We were aware more than ever of the joy we brought to neighbourhoods by our presence on the streets encouraging community support and engagement in a variety of different venues around the country. We continued to be in contact with those previous venues that were unable to host us and are looking to re-engage further in November/ December 2021. A number of supermarket stores mentioned how much they missed us.
Life After Betel Survey
A “Life After Betel Survey” was produced during the Summer of 2020 which reported on questions that a number of our ex-residents responded to regarding the impact of their time at Betel. Through social media, we were able to locate 274 of 462 individuals (59%) to send them a survey. We received surveys from 144 people, giving us a response rate of 53% of those who were sent the survey. The response rate is still 31% when all individuals identified are included (144/462).
A number of people wrote in their own responses of successes they have had since moving on from Betel,
including some of the following. Many of these comments WORK, VOLUNTEERING AND provide great anecdotal evidence of the success of Betel, in TRAINING addition to the quantifiable stats we were able to calculate from the survey responses.
“During my time in Betel I learned my landscaping skills which I now use to run my own successful business.”
FURTHER EDUCATION
“Graduated uni with first class honours after completing further education. Have raised two beautiful Betelito babies who are now 12 & 14.”
“Learning and experiencing the Betel culture equipped me to be effective in my job as support worker. The excellent work ethic, that is standard in Betel, was recognised by my employers and I have been promoted to senior manager in under 12 months. Betel has been a good influence in every area of my life.”
“I’ve completely a theology course...I’ve got an amazing support network & I’m on my way to becoming a substance & misuse worker.”
“Starting a degree in early childhood. Work full time as a nursery nurse. Got married. Got involved at church.”
“Since leaving Betel I followed my dream of working for the Welsh Ambulance Service. The road has no time been an easy one but with all I learned whilst at Betel helped me continue on the right path.”
GENERAL
“Managing to attain a mortgage and buy a house. Whilst this was an achievement in itself, maintaining sobriety and the stability to live with a mortgage, bills and the stresses of life that were unachievable in my addiction has proved the lasting transformational work of Betel UK.”
“Now self-employed and earning a good income. Financially support my in-laws. I'm now working as a selfemployed live in carer and involved in mentoring several vulnerable women.”
“I'd say that one of the main, overall successes for me has been the ability to persevere with things. This is a direct result of the 2.5 years I spent in Betel.”
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FAMILY
“I have a beautiful wife of 10 years and a beautiful daughter who is 7. And a mortgage!!!”
“My greatest achievement having moved on from Betel is enjoying married life and being a father to a twenty month old daughter.”
“Whilst in Betel I was lucky enough to have my son staying regularly and he came to live with me in community. That built our relationship and he is now living with me full time in our own home.”
“I have been reunited with my children & have been free of alcohol and drug addiction for 8 years after receiving support from betel for a period of 2 and a half years.”
CHRISTIAN LIFE
“I have learnt to be patient and to strive to achieve. In my current role I live as an example as a follower of Christ. All I have learnt even the challenges have helped in both building character and living a good Christian life.”
“God saw fit to return my mental health back to the level that it was ten years ago and I am thankful for that. I consistently attend church. Betel played a large part in helping me to identify that God has always been actively present in my life and always will be. I currently volunteer with Change, Grow, Live (CGL).”
“I've developed confidence, wisdom, discernment and being myself, accepting myself, loving people but not people pleasing, letting God take the lead, not always though, but learning to trust Him more each day.”
“August 30th 2020 will be the 20th year since entering Betel and 20 years since my commitment to Christ. 4 years with Betel, 2 years with City Church working and saving for Bible College. 1 year at the Bible College as a student and the following 13 years working at the Bible College, God is Good!!! More importantly the lessons I learned in my time at Betel have been invaluable & instrumental for me in walking out a solid life in Christ over these years!!!”
Commissioning of Just Economics Report
Finally, Just Economics were commissioned in 2020 to provide an accredited independent report to ascertain an economic value to the services Betel provides. Just Economics will be evaluating the impact of Betel based on the changes from when residents came into Betel and their entire time in Betel as well as the impact when a resident moves on from Betel.
It is important to note that all the protocols and procedures to implement the survey processes were set up internally within Betel including evaluating and revising them within Betel to ensure they were fit for purpose. In addition there was nationwide rollout training across all our centres with the first survey completed in January 2021, the aim being to anonymously track a person’s journey whilst at Betel and after they have moved on. The aim is that by the end of 2021 Just Economics will be able to evaluate the data to determine the economic value of Betel of Britain to society. Also, this Autumn 2021, we are planning to do an alumni survey through Just Economics for those who had been at Betel for at least 12 months and for whom we have contact details. We have always known the impact that Betel has on the lives of those who come to us but are looking forward to seeing this via an independent report.
Financial Review
The economic climate continues to be challenging, particularly for the retail sector. However, our therapeutic work activities continue to provide opportunities for our recovering men and women to learn valuable skills and life lessons and also provide resources to help cover housing and living costs for our residents.
The contribution from our Rising Cafés to the overall Other Therapeutic Work Revenue dropped to 16% in 2020 from 27% in 2019, mainly due to the closing of the café in Coventry in early March 2020.
We experienced a decrease in resources from our Shop Revenue (including the donations received in our shops from gift aided furniture sales and the tax reclaimed on these sales) due to required Covid-19 shop closures. However, 2020 internet trade sales, as a percentage of total Shop Revenue, grew to 33% due to the significant increase to online shopping and helped reduce the impact of Covid-19 on overall shop revenue. Grant funding received for social media support between 2018 and 2019 enabled us to invest in training, and we now see real returns on internet sales and rising awareness of our business and social impact ethos.
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Our Other Therapeutic Work Revenue surplus increased due to cost decreases in most areas (direct costs, vehicles, equipment & tools and training). We have also seen the benefit of intentionally improving our gardening vehicles and equipment and investing in resident skills training in 2019.
Our modest costs of administration remain well under control.
Overall, our therapeutic work (including gift aided furniture and the associated gift aid tax) generated 46% (2019: 67%) of the revenue of the charity. The 2020 therapeutic work percentages are down due to an increase in donations (excluding revenue from our gift aided furniture) of over 89% and £284,110 in Covid-19 government support.
However, combining our therapeutic work income (including revenue from our gift aided furniture) and the solicited donations from our concerted fund raising efforts during the month of December, our residents generated 83% of our general revenue (total revenue adjusted for restricted capital improvement donations, in-kind food donations and Covid-19 government support).
The rest of the revenue was received in donations and gifts, Covid-19 government support, various grants, and in-kind food donations and vehicles.
Principal Funding Sources – Therapeutic Work
46% of revenue in 2020 (67% in 2019) was generated by our therapeutic work areas (including donations generated by gift aided furniture) and have been applied to the maintenance and expansion of the same and the support and provision of housing for our residents. The drop in the revenue percentage is due to the effects of Covid-19 on our businesses, the Covid-19 government support received and not included in our therapeutic work income and mostly to the major increase in donations towards capital improvements. If the donations of £2,358,750 and Covid-19 government support of £251,718 (for work related areas only) were removed out of the calculation, then the 2020 revenue percentage would be 71% compared to the 2019 revenue percentage of 69%, also adjusted for 2019 donations for capital improvements.
Below are the results for our furniture shops, restoration and other therapeutic work (principally gardening, tree work, cafés and house clearances). Please note: because of the way Gift Aid on furniture donations operates, the income derived from gift aided furniture is actually shown under “Voluntary Income: Donations” in the Statement of Financial Activities. This is also true for a grant received to help with our other therapeutic work costs. We have presented the financial information below to include donations which are directly associated with the various work areas.
| irectly associated with the various work areas. | ||
|---|---|---|
| 2020 | 2019 | |
| £ | £ | |
| As Per Statement of Financial Activities | ||
| Total Shop Revenue | 1,239,669 | 1,415,157 |
| Shop Expenditure | 1,198,589 | 1,531,125 |
| Surplus for Charitable Purposes | 41,080 | (115,968) |
| Disputed Dilapidations Settlement on shop closed in 2016 | - | 100,000 |
| Surplus for Charitable Purposes adjusted for Dilapidations | 41,080 | (15,968) |
| Voluntary Income: Donations associated with Shops | ||
| Gift Aided Furniture Sales | 173,115 | 233,797 |
| Tax reclaimed on these sales | 43,279 | 58,449 |
| Shop Surplus adjusted for gift-aided furniture & dilapidations | 257,474 | 276,278 |
| As Per Statement of Financial Activities | ||
| Other Therapeutic Work Revenue (principally gardening) | 1,955,514 | 2,078,092 |
| Other Therapeutic Expenditure (principally gardening) | 1,028,939 | 1,176,040 |
| Surplus for Charitable Purposes | 926,575 | 902,052 |
| Voluntary Income: Donations associated with Other |
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| Therapeutic Work | ||
| Grant given for Other Therapeutic Work Costs | 21,000 | 20,200 |
| Other Therapeutic Work Surplus with Grant | 947,575 | 922,252 |
Principal Funding Sources – Fundraising Activities
Betel of Britain is committed to high standards with regard to fundraising activity and has complied with all laws relating to charities and fundraising. We are clear, honest and open about our activities and fund raising requirements. We are respectful towards all supporters, and with the work being carried out to meet GDPR regulations have recognised our strong procedures with regards to fundraising information security.
Donations: The majority of donations come from unsolicited gifts.
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We have been truly thankful for and touched by individuals, churches and trusts for their support over the year.
Significant food donations are received from various national stores and restaurants including Sainsburys, Tesco, Marks & Spencer, Waitrose, Ocado, Costco, Greggs, His Church Limited, KFC and Nandos. We are extremely grateful to all of these companies for their invaluable support and contribution to the charity. We also benefit greatly through membership in FareShare.
Due to Covid-19, our major carol singing fundraising events in the run up to Christmas were reduced by 60%, and therefore only produced £132.7k, a decrease of £367k over the previous year (2019 - £109k increase from 2018). Other active fund-raising (the sale of calendars and CDs, street collections and bag packing) were also hampered. Overall, solicited income was £196k (2019 - £568k), a decrease of £372k over the previous year.
Betel of Britain has not signed up to any voluntary fundraising schemes or standards. However, as noted above, all our fundraising activities are carried out to the highest possible standards. As regards the carol singing, many of the venues are subject to local authority licences which require formal reporting.
Principal Funding Sources – Covid-19 Government Support
Betel of Britain received £284,110 in Covid-19 government support from a £50k bounce back loan scheme loan, business rates relief, grants for our qualifying properties, participation in the Job Retention/Furlough Scheme for several of our employees and in the Eat Out to Help Out Scheme for our cafés.
Reserves Policy
The current reserves policy is to hold designated funds for specific projects only until distributed. No other reserves are held except for funds accrued for periodic outflows such as VAT and rent. However, this is currently being reviewed in light of the latest Charity Commission guidance.
Investment Policy
Betel does not have any investments.
Structure, Governance and Management
Governing Document
Memorandum and Articles of Association incorporated 19[th] May 2000.
A charitable company limited by guarantee.
The directors also act as trustees of the charitable activities of Betel of Britain.
Recruitment and Appointment of Trustees
Trustees are recruited and appointed by the existing Board of Trustees and are representative of professional, business, charitable and Christian service backgrounds. In 2020 we recruited four new trustees to the board and are continuing to seek ways in which to increase our board.
Trustee Induction and Training
There is no formal induction or training policy for new trustees but they have to be fully committed to the ethos of Betel. Trustee training is planned.
Risk Management
The trustees acknowledge their responsibility to manage the risks facing the charity. The pursuit of our charitable objects entails a level of risk higher than many other charities. Most of our beneficiaries are from unstable backgrounds. Our vision is to see people transformed from an addictive life to a productive one. Part of the process involves putting people into positions of trust when in the past they have been untrustworthy. This strategy brings successful results but entails risk.
We have identified risks in the areas of governance, operational, financial, external and compliance. Major risks have been identified and steps taken to mitigate those risks as much as is possible. Risk management is an ongoing process, fluid and challenging in a relatively young and growing organisation.
Organisational Structure
The trustees, supported by professional advisers, provide overall strategy and vision.
The decisions of the trustees are enacted by Kent and Mary-Alice Martin, the Executive UK Directors, and delegated through regional and local house managers or business managers.
Birmingham Region and HQ: Overall oversight by Kent and Mary-Alice Martin assisted by a local leadership team.
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The following regions of Nottingham, Derby, Manchester, Hexham and Motherwell have regional managers who are assisted by local leadership teams. These managers meet regularly on a national basis and form the backbone of Betel's management structure.
Equal Opportunities and representation: The majority of those regional managers together with all the local leadership teams, are people who have used, or are using, our services (ex-addicts).
Grant Making
Related Parties
Betel of Britain has a number of important informal relationships which arise out of common areas of operation which help Betel to function more effectively, i.e., Betel International, Spain. Workers from Betel of Britain attend conferences and leaders meetings at the head office in Spain. There are occasional movements of volunteers from one country to another, and there are centres in twenty-two countries on all major continents. Betel was started by personnel from WEC International, which is an evangelical Christian missionary organisation, and there continues informal contact with this organisation. Betel is a member of ISAAC (the International Substance Abuse and Addiction Coalition) and the Evangelical Alliance.
Individuals
Grants can be made to individuals where it is assessed that such support will aid the individual on a course to a more independent life.
Details of grants made are reported in Note 8.
Statement of Trustees’ Responsibilities
The trustees (who are also directors of the charitable company for the purposes of company law) are responsible for preparing the trustees’ report and the financial statements in accordance with general applicable law and United Kingdom Accounting Standards (United Kingdom General Accepted Accounting Practice).
Company law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources of the charitable company for that period. In preparing these financial statements, the trustees are required to:
Select suitable accounting policies and then 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, subject to any material departures disclosed and explained in the financial statements;
Prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business.
The trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safekeeping the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
In so far as the trustees are aware:
There is no relevant audit information of which the charitable company’s auditor is unaware; and the trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditor is aware of that information.
This report was approved by the Trustees on 31 August 2021 and signed on its behalf by
Kent Martin Trustee and Director
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AUDITOR’S REPORT TO THE TRUSTEES OF BETEL OF BRITAIN
Independent Auditors' Report to the members of Betel of Britain
Opinion
We have audited the financial statements of Betel of Britain for the year ended 31 December 2020, which comprise the Statement of Financial Activities, Balance Sheet and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019) - (Charities SORP (FRS 102)).
This report is made solely to the Charitable Company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the Charitable Company's members and trustees those matters we are required to state to them in an auditor's 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, the Charitable Company’s members as a body, and the Charitable Company’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.
In our opinion the financial statements:
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give a true and fair view of the state of the charitable company’s affairs as at 31 December 2020 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended;
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have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
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have been prepared in accordance with the requirements of the Companies Act 2006, the Charities Act 2011 and the Charities and Trustee Investment (Scotland) Act 2005 and Regulation 8 of the Charities Accounts (Scotland) Regulations 2006 (amended).
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report.
We are independent of the 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 as applied to public interest entities, and we have fulfilled our other ethical responsibilities in accordance with these requirements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.
Other information
The trustees are responsible for the other information. The other information comprises the information included in the trustees’ report, other than the financial statements and our auditor’s report thereon. 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.
9
In connection with our audit of the financial statements, 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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. 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.
Opinion on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the 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 requirements.
Matters on which we are required to report by exception
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 and the Charities Accounts (Scotland) Regulations 2006 require us to report to you if, in our opinion:
-
adequate and proper accounting records have not been kept, or returns 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 trustees’ remuneration specified by law are not made; or
-
we have not received all the information and explanations we require for our audit.; or
-
the charity has not kept sufficient accounting records; or
-
the trustees 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 trustees’ report and from the requirement to prepare a strategic report.
Responsibilities of trustees
As explained more fully in the trustees’ responsibilities statement set out on page 8, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the trustees are responsible for assessing the 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 trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the financial statements
We have been appointed as auditor under section 151 of the Charities Act 2011, and section 44(1) (c) of the Charities and Trustee Investment (Scotland) Act 2002 and under the Companies Act 2006 and report in accordance with the Acts and relevant regulations made or having effect thereunder.
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
10
Our assessment focused on key laws and regulations the charitable company has to comply with and areas of the financial statements we assessed as being more susceptible to misstatement. These key laws and regulations included but were not limited to compliance with the Companies Act 2006, Charities Act 2011, United Kingdom Generally Accepted Accounting Practice and relevant tax legislation.
We are not responsible for preventing irregularities. Our approach to detect irregularities included, but was not limited to, the following:
-
obtaining an understanding of the charitable company's policies and procedures and how the charitable company has complied with these, through discussions and sample testing of controls;
-
obtaining an understanding of the legal and regulatory framework applicable to the charitable company and how the charitable company is complying with that framework;
-
an understanding of the charitable company’s risk assessment process, including the risk of fraud;
-
designing our audit procedures to respond to our risk assessment; and
-
performing audit work over the risk of management override of controls including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing estimates for bias.
Whilst considering how our audit work addressed the detection of irregularities, we also consider the likelihood of detection based on our approach. Irregularities arising from fraud are inherently more difficult to detect than those arising from error.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of noncompliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission, or misrepresentation.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. 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 2006, and to the charitable company’s trustees, as a body, in accordance with Regulation 10 of the Charities Accounts (Scotland) Regulations 2006. Our audit work has been undertaken so that we might state to the charitable company’s members and trustees those matters we are required to state to them in an auditor’s 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, the charitable company’s members as a body and the charitable company’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.
Jonathan Russell (Senior Statutory Auditor) For and on behalf of Just Audit & Assurance Ltd, Statutory Auditor
37 Market Square Witney Oxfordshire OX28 6RE
Date:10[th] September 2021
11
Betel of Britain
Statement of Financial Activities (including Income and Expenditure Account) for the year ended 31[st] December 2020
| Incoming Resources Notes Incoming resources from generated funds Voluntary income Donations 2 Activities for generating funds: Carol Singing, Bag Packing, Calendars, etc. 3 Incoming resources from charitable activities Shop income 4 Other Therapeutic Work 4 Total incoming resources from generated funds and charitable activities Investment Income 5 Other Incoming Resources 6 Total Incoming Resources Resources expended Cost of generating funds Fundraising and publicity 7 Charitable Expenditure Grants Payable 8 Shop Expenditure (incl Cost of Sales) 9 Other Therapeutic Work 9 Centre Expenses 9 Governance Costs 9 Total Charitable Expenditure Total Resources Expended Net Income for the year before Transfers 10,11 Transfers between Funds 19 Net Movement in Funds Reconciliation of Funds Total Funds brought forward Total Funds carried forward |
Unrestricted Restricted 2020 Total 2019 Total £ £ £ £ 1,150,461 2,527,853 3,678,314 1,364,772 196,016 - 196,016 568,523 1,239,669 - 1,239,669 1,415,157 1,955,514 - 1,955,514 2,078,092 |
|---|---|
| 4,541,660 2,527,853 7,069,513 5,426,544 731 349 1,080 1,298 324,824 - 324,824 191,988 |
|
| 4,867,215 2,528,202 7,395,417 5,619,830 |
|
| 49,208 - 49,208 74,054 |
|
| 225,387 - 225,387 286,663 1,187,157 11,432 1,198,589 1,531,125 991,657 37,282 1,028,939 1,176,040 1,835,312 60,466 1,895,778 2,256,732 27,423 - 27,423 27,338 |
|
| 4,266,936 109,180 4,376,116 5,277,898 |
|
| 4,316,144 109,180 4,425,324 5,351,952 |
|
| 551,071 2,419,022 2,970,093 267,878 2,331,627 (2,331,627) - - |
|
| 2,882,698 87,395 2,970,093 267,878 4,138,757 103,590 4,242,347 3,974,469 |
|
| 7,021,455 190,985 7,212,440 4,242,347 |
The notes on pages 15 - 28 form an integral part of these accounts
12
Betel of Britain Company Number: 03998028 Balance Sheet at 31[st] December 2020
| Fixed Assets Notes Tangible Assets 12 Intangible Assets 13 Current Assets Stocks 14 Debtors 15 Cash at Bank and in Hand Creditors: amounts falling due within one year 16 Net Current Assets Total Assets less Current Liabilities Creditors: amounts falling due after more than one year 17 Net Assets 18 Funds Unrestricted Funds Restricted Funds 19 Total Funds |
2020 £ £ 10,715,667 667 10,716,334 295,395 285,400 1,331,620 1,912,415 1,150,199 762,216 11,478,550 4,266,110 7,212,440 7,021,455 190,985 7,212,440 |
2020 £ £ 10,715,667 667 10,716,334 295,395 285,400 1,331,620 1,912,415 1,150,199 762,216 11,478,550 4,266,110 7,212,440 7,021,455 190,985 7,212,440 |
2019 £ £ 7,793,454 - 7,793,454 297,840 288,652 951,491 1,537,983 677,767 860,216 8,653,670 4,411,323 4,242,347 4,138,757 103,590 4,242,347 |
2019 £ £ 7,793,454 - 7,793,454 297,840 288,652 951,491 1,537,983 677,767 860,216 8,653,670 4,411,323 4,242,347 4,138,757 103,590 4,242,347 |
|---|---|---|---|---|
| 10,716,334 762,216 |
7,793,454 860,216 |
|||
| 1,912,415 1,150,199 |
1,537,983 677,767 |
|||
| 11,478,550 4,266,110 |
8,653,670 4,411,323 |
|||
| 7,212,440 | 4,242,347 | |||
| 7,021,455 190,985 7,212,440 |
4,138,757 103,590 4,242,347 |
The Financial Statements were approved by the Board on 31 August 2021 and signed on its behalf by
Kent Martin, Director
The notes on pages 15 - 28 form an integral part of these accounts
13
Betel of Britain Statement of Cash Flows for the year ended 31[st] December 2020
| 2020 | 2019 | ||||
|---|---|---|---|---|---|
| Unrestricted | Restricted | Total | Total | ||
| Notes | £ | £ | £ | £ | |
| Cash flows from operating activities: | |||||
| Net cash provided by (used in) operating | Table | ||||
| activities | 1 | 1,243,233 | 2,419,022 | 3,662,255 | 783,687 |
| Cash flows from investing activities: | |||||
| Proceeds from sale of fixed assets | 32,483 | - | 32,483 | 1,506,816 | |
| Purchase of intangible asset | (834) | - | (834) | ||
| Purchase of property, plant and equipment | (898,228) | (2,331,627) | (3,229,855) | (1,674,628) | |
| Net cash provided by (used in) investing | |||||
| activities | (866,579) | (2,331,627) | (3,198,206) | (167,812) | |
| Cash flows from financing activities | |||||
| Repayments of borrowing | (233,150) | - | (233,150) | (887,155) | |
| Cash inflows from new borrowing | 149,230 | - | 149,230 | 581,990 | |
| Net cash provided by (used in) financing | |||||
| activities | (83,920) | - | (83,920) | (305,165) | |
| Change in cash and cash equivalents in the | |||||
| reporting period | 292,734 | 87,395 | 380,129 | 310,710 | |
| Cash and cash equivalents at the beginning | |||||
| of the reporting period | 847,901 | 103,590 | 951,491 | 640,781 | |
| Cash and cash equivalents at the end of the | Table | ||||
| reporting period | 2 | 1,140,635 | 190,985 | 1,331,620 | 951,491 |
| 2020 | 2019 | ||||
| Unrestricted | Restricted | Total | Total | ||
| £ | £ | £ | £ | ||
| Table 1: Reconciliation of net movement in funds to net cash flow from operating | activities | ||||
| Net income for year before transfers | 551,071 | 2,419,022 | 2,970,093 | 267,878 | |
| Adjustments for: | |||||
| Depreciation | 250,861 | - | 250,861 | 252,549 | |
| Amortisation of intangible assets | 167 | - | 167 | - | |
| Loss/(profit) on disposition of assets | 24,299 | - | 24,299 | (158,323) | |
| (Increase)/decrease in stocks | 2,445 | - | 2,445 | (15,528) | |
| (Increase)/decrease in debtors | 3,252 | - | 3,252 | 379,592 | |
| Increase/(decrease) in creditors | 411,138 | - | 411,138 | 57,519 | |
| Net cash provided by (used in) operating activities | 1,243,233 | 2,419,022 | 3,662,255 | 783,687 | |
| Table 2: Analysis of cash and cash equivalents | |||||
| Cash in hand | 20,727 | - | 20,727 | 22,445 | |
| Notice deposits (less than 30 days) | 1,172,347 | 190,985 | 1,363,332 | 976,926 | |
| Overdraft facility repayable on demand | (52,439) | - | (52,439) | (47,880) | |
| Total cash and cash equivalents | 1,140,635 | 190,985 | 1,331,620 | 951,491 |
The notes on pages 15 - 28 form an integral part of these accounts
14
Betel of Britain
Notes to the Financial Statements For the year ended 31[st] December 2019
1. Accounting Policies
1.1. Accounting Convention
The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2015) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.
Betel of Britain meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy notes.
1.2. Incoming Resources
Voluntary income is received by way of donations and gifts and is included in full in the Statement of Financial Activities when receivable. Gifts donated for resale are included as income when they are sold. Donated assets are included at the value to the charity where this can be quantified and a third party is bearing the cost. Significant food donations are received from various national stores and restaurants, and a Gift in Kind value has been calculated for these donations based on an average number of residents multiplied by £4.26 per day. This is included in voluntary income. Other than where small regular allowances and other payments have been made to them, the value of services provided by volunteers has not been included.
Grants and benefits, including grants for the purchase of fixed assets, are recognised in full in the Statement of Financial Activities in the year in which they are receivable.
Income from charity shops is included in the year in which it is receivable. Since these provide therapeutic work, which is a direct aim of the charity, such is included as activities in furtherance of the charity’s objects.
Shop Expenditure is similarly treated as direct.
Income from investments is included in the year in which it is receivable.
Tax receivable on Gift Aided donations is included when receivable.
1.3. Resources expended
Resources expended are recognised in the year in which they are incurred and include irrecoverable VAT in the cost to which it relates.
Fundraising costs are those incurred in seeking voluntary contributions, including the costs of disseminating information in support of the charitable activities. Where publicity incorporates details of shop and services, such costs have not been separated out to Shop & Services expenses, since it is impractical to do so.
Support costs are those costs incurred directly in support of expenditure on the objects of the charity and include project management. These have been allocated to each of the elements of charitable expenditure as appropriate.
Governance costs are those incurred in ensuring that the company complies with its legal and statutory obligations.
15
1.4. Tangible Fixed Assets and depreciation
Depreciation is provided at rates calculated to write off the cost less residual value of each asset over its expected useful life, as follows:
Freehold Buildings Straight line over fifty years Portable Buildings 15% reducing balance Leasehold Properties Straight line over period of lease Equipment 25% reducing balance Furniture, Fixtures and Fittings 15% reducing balance Motor Vehicles 25% reducing balance Sewage Treatment Plant 5% reducing balance Intangible Fixed Asset – Software 20% straight line
Freehold land is not depreciated.
The capitalisation thresholds for fixed assets are: £500 for equipment £1,000 for property e.g. ‘leasehold property improvements’, ‘furniture fixtures & furnishings’.
1.5 Leasing
Assets obtained under hire purchase contracts and finance leases are capitalised as tangible assets and depreciated over the shorter of the lease term and their useful lives. Obligations under such agreements are included in creditors net of the finance charge allocated to future periods. The finance element of the rental payment is charged to the Income & Expenditure Account so as to produce constant periodic rates of charge on the net obligations outstanding in each period.
Rentals payable under operating leases are charged against income on a straight line basis over the lease term.
1.6 Investments
Fixed Asset Investments are stated at cost less provision for diminution in value.
Current Asset Investments are at the lower of cost and net realisable value.
1.7 Stock
Stock bought for re-sale in the charity shops is valued at the lower of cost and net realisable value. Christmas tree stock is valued at a percentage of future re-sale value less harvesting & transportation costs. The percentage is based on accumulative years of growth over the number of years required to obtain five feet in height.
1.8 Fund Accounting
Unrestricted Funds are incoming resources, which can be used in accordance with the charitable objects at the discretion of the trustees.
Restricted Funds are to be used for specific purposes. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.
1.9 Cash and Cash Equivalents
Cash and cash equivalents comprise cash on hand and call deposits and other short term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.
16
1.10 Taxation
The Charity is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the Charity is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.
2 Donations
| General Donations Gift Aid Donations Income tax recoverable Tithes Gifts in Kind |
Unrestricted Restricted 2020 2019 Funds Funds Total Total £ £ £ £ 336,014 2,125,853 2,461,867 488,031 281,887 321,600 603,487 309,330 70,471 80,400 150,871 77,332 7,253 - 7,253 3,165 454,836 - 454,836 486,914 |
|---|---|
| 1,150,461 2,527,853 3,678,314 1,364,772 |
3 Activities for generating funds
| Bag packing Carol Singing Calendars Street Collections Books, CDs, DVDs |
Unrestricted Restricted 2020 2019 Funds Funds Total Total £ £ £ £ 823 - 823 23,924 125,259 - 125,259 494,783 0 - 0 5,573 68,689 - 68,689 43,985 1,245 - 1,245 258 |
|---|---|
| 196,016 - 196,016 568,523 |
4 Incoming resources from charitable activities
| All unrestricted Centre Motherwell Hexham Manchester Derby Birmingham Nottingham Totals |
funds: 2020 2019 Shops Therapeutic Total Shops Therapeutic Total £ £ £ £ £ £ 1,279 156,451 157,730 - 115,396 115,396 217,301 243,881 461,182 213,331 268,468 481,799 111,568 147,522 259,090 167,095 143,287 310,382 287,388 515,110 802,498 332,427 547,942 880,369 406,763 430,602 837,365 432,046 586,555 1,018,601 215,370 461,948 677,318 270,258 416,444 686,702 |
|---|---|
| 1,239,669 1,955,514 3,195,183 1,415,157 2,078,092 3,493,249 |
17
5 Investment Income
| Interest from UK Bank Accounts and HMRC | Unrestricted Restricted 2020 2019 Funds Funds Total Total £ £ £ £ 731 349 1,080 1,298 |
|---|---|
6 Other Incoming Resources
| Covid-19 Government Support -Furlough Scheme Covid-19 Government Support -Eat Out to Help Out Covid-19 Government Support -Bus Rates Relief Covid-19 Government Support -Grants Covid-19 Government Support – BBLS interest Other Income |
Unrestricted Restricted 2020 2019 Funds Funds Total Total £ £ £ £ 3,749 - 3,749 - 10,761 - 10,761 - 24,809 - 24,809 - 244,688 - 244,688 - 103 - 103 - 40,714 - 40,714 191,988 |
|---|---|
| 324,824 - 324,824 191,988 |
The Covid-19 government support income has been recorded using the accrual model and the grants as revenue-based. There are no unfulfilled conditions or contingencies attached to the grants.
7 Cost of Generating Funds (Fundraising and Publicity)
| Flyers Advertising/Promotional Activities DVDs, Videos, Tapes Calendars Betel Books Signage |
Unrestricted Restricted 2020 2019 Funds Funds Total Total £ £ £ £ 28,791 - 28,791 37,742 18,214 - 18,214 35,774 - - - - - - - 129 1,594 - 1,594 48 609 - 609 361 |
|---|---|
| 49,208 - 49,208 74,054 |
8 Grants Payable
| Number of grants Betel of Spain 1 Betel of Brazil - Betel of Czech Republic - Betel of India - Betel of South Africa - Betel of Russia - Ground Level 1 ISAAC 1 Other organisations 6 Individuals 178 |
Unrestricted Funds Restricted Funds 2020 Total 2019 Total £ £ £ £ 118,630 - 118,630 147,501 - - - 7,000 - - - 169 - - - 2,151 - - - 1,684 - - - 8,000 510 - 510 960 75 - 75 300 675 - 675 1,427 105,497 - 105,497 117,471 |
|---|---|
| 225,387 - 225,387 286,663 |
18
9 Charitable Activities
| Costs directly related to activities: Premises Direct Costs Vehicles Residents Voluntary workers’ costs Staff & training Communications Events & meetings Office Equipment & tools Legal & professional Bank interest & charges Other costs Support costs allocated to activities: Voluntary workers’ costs Communications Office Staff & training Bank interest & charges |
Shops Other Therapeutic Work Centre Governance 2020 2019 £ £ £ £ £ £ 413,983 62,472 765,324 - 1,241,779 1,563,362 372,430 441,287 - - 813,717 1,032,767 134,869 200,833 301,662 - 637,364 775,802 - - 494,940 - 494,940 588,024 40,131 38,816 - - 78,947 70,348 - 24,959 - - 24,959 28,771 22,264 14,991 9,659 - 46,914 41,862 - - 26,281 - 26,281 75,284 22,925 8,120 306 - 31,351 19,036 12,750 99,566 1,302 - 113,618 97,829 31,791 3,228 15,459 10,076 60,554 47,341 7,708 12,333 110,220 - 130,261 192,750 24,798 13,711 52,627 - 91,136 89,248 52,133 48,359 49,737 7,907 158,136 188,501 14,415 13,381 13,765 2,188 43,749 45,000 8,136 7,781 8,084 1,263 25,264 27,771 35,581 37,744 40,462 5,989 119,776 95,388 4,675 1,358 5,950 - 11,983 12,151 |
|---|---|
| 1,198,589 1,028,939 1,895,778 27,423 4,150,729 4,991,235 |
10 Operating Surplus
| 2020 | 2019 | |
|---|---|---|
| Total | Total | |
| £ | £ | |
| Operating surplus is stated after charging: | ||
| Depreciation and other amounts written off tangible assets | 250,861 | 252,549 |
| Amortisation of intangible assets | 167 | - |
| Loss (Gain) on disposal of tangible fixed assets | (24,299) | (158,323) |
| Auditor’s remuneration | 9,500 | 9,000 |
| Equipment Hire | 11,553 | 24,538 |
| Vehicle Hire | 6,863 | 4,369 |
19
11 Interest payable and similar charges Included in this category is the following:
| On Unsecured Obligations and Supplier Balances Hire purchase finance charges On Bank Loans and Overdrafts On Secured Loans repayable in five years or more |
2020 2019 Total Total £ £ 97 1,249 13,463 10,959 2,781 1,712 110,518 135,863 |
|---|---|
| 126,859 149,783 |
12 Tangible Fixed Assets
| Cost At 1st January 2020 Additions Disposals At 31stDecember 2020 Depreciation At 1st January 2020 On Disposals Charge for the Year At 31stDecember 2020 Net Book Value At 31stDecember 2020 At 31stDecember 2019 |
Freehold Land & Buildings Long-term Leasehold Improvements Short-term Leasehold Improvements Equipment Furniture Fixtures & Fittings Motor Vehicles Total £ £ £ £ £ £ £ 7,994,068 103,638 1,000 319,753 224,033 701,358 9,343,850 2,970,359 12,323 - 100,766 14,866 131,541 3,229,855 - (6,180) - (41,341) (946) (189,744) (238,211) |
|---|---|
| 10,964,427 109,781 1,000 379,178 237,953 643,155 12,335,494 |
|
| 738,343 44,483 1,000 217,717 128,647 420,206 1,550,396 - (6,180) - (33,079) (886) (141,285) (181,430) 104,947 7,734 - 32,234 14,888 91,058 250,861 |
|
| 843,290 46,037 1,000 216,872 142,649 369,979 1,619,827 |
|
| 10,121,137 63,744 - 162,306 95,304 273,176 10,715,667 |
|
| 7,255,725 59,155 - 102,036 95,386 281,152 7,793,454 |
The Freehold Land and Buildings are subject to legal charges of £4,053,869 (2019: £4,137,081).
Included above are assets held under finance leases or hire purchase contracts as follows:
| Asset Description Equipment Vehicles |
2020 Total 2019 Total Net Book Value Depreciation Charge Net Book Value Depreciation Charge £ £ £ £ 9,000 (3,000) 12,000 (4,000) 120,985 (40,328) 129,288 (43,096) |
|---|---|
| 129,985 (43,328) 141,288 (47,096) |
In 2019, legal title passed on a property which has been occupied by the charity and included in Freehold land and buildings since 2012. The arrangement included the provision of an interest free loan repayable over 10 years. The property was capitalised and the balance of the loan included in the balance sheet to reflect the underlying substance of the transaction. The many planning and environmental concerns were finally cleared in 2019, and the cost of £619,808 (2018: £619,808) is now included in the accounts with no legal charges except for an overage agreement with the University of Manchester.
20
13 Intangible Assets
| Cost At 1stJanuary 2020 Cybertill Software 2020 Additions: Presenter Software At 31stDecember 2020 Amortisation At 1stJanuary 2020 Cybertill Software Charge for the Year: Presenter Software At 31st December 2020 Total Intangible Asset 14 Stocks Raw Materials and Consumables Finished goods and goods for resale 15 Debtors Other Debtors Prepayments & Accrued Income 16 Creditors: amounts falling due within one year VAT Payroll Liabilities Trade Creditors Credit Card Accounts Bank Loans (secured) Net Obligations under Finance Leases & Hire Purchases (secured) Other Loans (unsecured) Other Loans (secured) Accruals and Deferred Income |
Total £ £ 29,640 834 30,474 29,640 167 29,807 667 2020 2019 Total Total £ £ 115,233 88,481 180,162 209,359 |
|
|---|---|---|
| 295,395 297,840 |
||
| 2020 2019 Total Total £ £ 137,983 74,114 147,417 214,538 |
||
| 285,400 288,652 |
||
| 2020 2019 Total Total £ £ 31,792 11,878 3,524 - 801,513 313,308 14,453 15,389 117,381 54,943 56,142 49,156 35,183 40,155 19,791 22,949 70,420 169,989 |
||
| 1,150,199 677,767 |
21
17 Creditors: amounts falling due after more than one year
| Bank Loans due in 2-5 years (secured) Other Loans due in 2-5 years (secured) Other Loans due in 2-5 years (unsecured) Loans due in > 5 years (unsecured, repayable by instalments) Loans due in > 5 years (secured, repayable by instalments) Net Obligations under Finance Leases & Hire Purchases (secured) |
2020 2019 Total Total £ £ 508,948 491,897 87,204 82,403 105,705 78,128 159,230 164,387 3,320,545 3,484,889 84,478 109,619 |
|---|---|
| 4,266,110 4,411,323 |
18 Analysis of Net Assets between Funds
| Fund Balances at 31stDecember 2019 as represented by: Tangible Fixed Assets Intangible Fixed Assets Current Assets Current Liabilities Long-term Liabilities |
Unrestricted Restricted 2020 2019 Funds Funds Total Total £ £ £ £ 10,715,667 - 10,715,667 7,793,454 667 - 667 - 1,721,430 190,985 1,912,415 1,537,983 (1,150,199) - (1,150,199) (677,767) (4,266,110) - (4,266,110 (4,411,323) |
|---|---|
| 7,021,455 190,985 7,212,440 4,242,347 |
19 Restricted Funds
| 19 Restricted Funds | |
|---|---|
| BIRMINGHAM Eveson Trust 2012 -Roland Printer Headquarters Building Voluntary Worker Holidays Building Trades Training Houston Charitable Trust– Pilates & Dance Training 29thMay 1961 Charitable Trust - Christmas 2020 Celebrations Jerusalem Trust –Food Services Manager Dale House HS2 Property Lease Costs Land Rover –Gardening Equip/Tools Vardy Foundation –Leaving Support Worcestershire Community Foundation Worcestershire Community Foundation Support Gifts for Voluntary Workers Sub-totals |
At 1st January 2020 Incoming Outgoing Transfers At 31st December 2020 £ £ £ £ £ 1,517 - - (1,517) - - 1,945,952 - (1,995,603) (49,651) - 1,000 (1,000) - - 9,128 - (1,160) - 7,968 3,038 - (1,853) - 1,185 - 10,000 (10,000) - - 7,728 21,000 (19,898) - 8,830 - 5,000 (5,000) - - 4,145 - (3,086) (1,059) - 3,775 5,000 (3,775) - 5,000 - 3,000 (2,644) - 356 - 2,000 (2,000) - - - 1,895 (1,895) - - |
| 29,331 1,994,847 (52,311) (1,998,179) (26,312) |
22
| DERBY Highfields Farm Land/Building Purchase Sub-totals NOTTINGHAM Manna Farm Improvements Gift from Individual -Gardening Equipment Nott CM NCF-NRL Fund –property addition Driving Lessons New Life Christian Fellowship Sleaford – for Manna Farm Oaks Community Centre– for Manna Farm NET Corona Virus Appeal USA Church– for Replacing IT Hardware Ikon Church Gift from Individual -for Vehicles Various Gifts for Women’s Residence Sub-totals HEXHAM Vardy Foundation – Boiler replacements Vardy Foundation –Covid Centre Support Vardy Foundation –Covid Ther Work Support Vardy Foundation –Covid Shops Support USA Church– for Replacing IT Hardware Gift from Individual –Café Dishwasher Sub-totals MANCHESTER Vardy Foundation –Covid Centre Support Vardy Foundation –Covid Ther Work Support Gift from Individual –for work on Hardy Farm Gift from Individual –for Garden tools Sub-totals MOTHERWELL Gifts from Individuals – for Container purchase Gift from Individual –for Resident Entertainment Sub-total TOTALS |
At 1st January 2020 Incoming Outgoing Transfers At 31st December 2020 £ £ £ £ £ 37,518 62,500 - (100,018) - |
|---|---|
| 37,518 62,500 - (100,018) - |
|
| 2,102 344,300 (252) (169,050) 177,100 - 16,000 - (16,000) - 32,296 - (353) (31,943) - 500 900 (1,284) - 116 - 840 (840) - - - 1,800 (1,800) - - - 10,000 (10,000) - - 341 1,486 (548) (1,279) - - 1,200 (1,200) - - - 8,000 - (8,000) - 150 15,300 (450) (1,301) 13,699 |
|
| 35,389 399,826 (16,727) (227,573) 190,915 |
|
| 268 - (268) - - - 18,348 (18,348) - - - 11,219 (11,219) - - - 9,432 (9,432) - - - 1,280 - (1,280) - - 1,650 - (1,650) - |
|
| 268 41,929 (39,267) (2,930) - |
|
| - 25,723 (441) - 25,282 - 277 (277) - - 1,084 - - (1,084) - - 2,000 (157) (1,843) - |
|
| 1,084 28,000 (875) (2,927) 25,282 |
|
| - 800 - - 800 - 300 - - 300 |
|
| - 1,100 - - 1,100 103,590 2,528,202 (109,180) (2,331,627) 190,985 |
Transfers are made for funds expended on capitalised fixed assets such as property purchases, vehicles and equipment.
23
20 Financial Commitments
At 31[st] December 2020, the company had annual commitments under non-cancellable operating leases as follows:
| 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 |
Land & Buildings and Vehicle Leases Residence, Studley Residence, Birmingham Garage, Alvechurch Residence, Birmingham Residence, Redditch Residence, Birmingham Residence, Harborne Shirley Shop, Shirley Residence, Wythall Warehouse, Birmingham Residence, Birmingham Yardley Wood Shop, Birmingham Burton On Trent Shop, Derby Newcastle Shop, Newcastle u Lyme Benwell Shop, Newcastle u Tyne Hexham Shop, Hexham Residence, Hexham Rising Café, Hexham Renault DX19 EBU Furniture Van Chorlton Shop, Manchester Alive Church Café, Lincoln Arnold Shop, Nottingham Residence, Grantham Total Financial Commitments: |
Terms Through 18/3/2021 Through 14/2/2021 Month to month Through 18/5/2021 Month to month Through 11/10/2021 Through 21/5/2022 Through 09/04/2027 Rent review 10/04/2022 Month to month Through 20/10/2022 Through 20/11/2045 Rent review every year Through 31/12/2021 Rent review every 5 years Through 31/03/2024 Month to month Through 25/11/2029 Through 22/04/2023 Through 01/09/26 rent free Through 19/03/2023 Through 12/08/2023 Through 20/03/21 rent free Through 13/03/2022 Month to month Through 27/06/2021 |
Break Clause 10/04/2022 6 month notification 01/11/2020 exercised 25/11/2022 |
Rent per Annum £ 6,000 11,940 15,000 10,500 9,600 13,140 11,400 57,000 11,040 14,000 58,872 23,000 47,000 35,000 20,000 31,500 0 8,592 8,038 0 5,000 15,000 26,400 |
Total Lease Commitment £ 1,500 1,990 0 3,994 0 6,570 11,400 357,460 0 25,238 1,463,623 23,000 152,718 0 188,167 72,666 0 18,997 20,096 0 5,986 0 12,289 |
|
|---|---|---|---|---|---|---|
| 2,365,694 |
The above commitments can be analysed as follows:
| The total of future minimum lease payments under non-cancellable operating leases for each of the following periods | The total of future minimum lease payments under non-cancellable operating leases for each of the following periods |
|---|---|
| Not later than one year | 305,995 |
| Later than one year but not later than five years | 719,975 |
| Later than five years | 1,339,724 |
24
21 Transactions with Trustees
Trustee transactions are insignificant as most trustees cover their own costs pertaining to their duties as trustees (seven trustees in 2020, three in 2019). However, significant related party expenses are incurred, as two (2019, two) of the trustees are the national operational directors of Betel of Britain, and three (2019, three) other related party individuals are involved in the furtherance of the charitable objectives. Kent and Mary Alice Martin, two of the trustees, were provided with rent free on-site accommodation for the furtherance of the charitable objectives; and two related party voluntary workers were provided offsite housing, also for the furtherance of the charitable objectives.
| housing, also for the furtherance of the charitable objectives. | ||
|---|---|---|
| 2020 | 2019 | |
| Total | Total | |
| £ | £ | |
| Trustee Travel & Food associated with Trustee Duties | - | 488 |
| Related Party Transactions | ||
| Donations received in recognition of work done for the charity (including | ||
| speaking) | 20,691 | 21,341 |
| Mileage/Travelling Expenses | 3,838 | 9,552 |
| Guest Hospitality/Entertainment | 609 | 2,125 |
| Training obtained for Additional Charitable Work | 3,938 | 1,147 |
| Travel/Food Costs incurred while Supporting Betel International Centres | 394 | 159 |
| Travel/Food while Visiting USA Supporters of Betel of Britain | 100 | 635 |
| Food/Subsistence while Travelling in the UK for Charitable Objectives | 1,236 | 1,223 |
| Attending Conferences (Accommodation, Travel and Food) | 30 | 324 |
| Ministry/Meetings Food and Drink | 406 | 1,209 |
| Other Accommodation | 753 | 317 |
22 Related party transactions
Kent Martin, Director of Betel of Britain, is also a trustee of Betel of Czech Republic and Betel of South Africa. Elliott Tepper, Founder of Betel International and Director of Betel of Spain, is also a trustee of these Centres and many others. Regular gifts, as listed in Note 8, have been made during the year by Betel of Britain to other Betel Centres around the world.
23 Staff costs
There were 5 part time employees and 3 full time staff during the year. (2019: 4 part time and 3 full time). No employees received emoluments greater than £60,000 in 2020 or 2019.
Input into Betel is given by 12 people who are WEC missionaries (2019: 12). Their support comes from churches and individuals and is channelled to them via WEC International.
| 2020 | 2019 | |
|---|---|---|
| Total | Total | |
| £ | £ | |
| Wages and Salaries | 120,042 | 94,251 |
| Social Security | 6,777 | 4,970 |
25
24 Control of the Charity
Control of the charity is vested in the trustees .
25 Contingent Liabilities
There are no contingent liabilities.
26 Post Balance Sheet Events
Work is ongoing at the new headquarters property located in the Aston area of Birmingham which will operate as a multi-purpose site: namely, as the Betel of Britain national administrative offices, as Betel Birmingham’s church, and for the creation of additional social enterprises areas, including a restaurant, online cake shop, catering, beauty salon, as well as a conference/performing arts area for hire. As of June 2021, Betel has received specific donations and grants for the headquarters totalling £2,568,200. We were able to open a general meeting area early in the year, and it has been used within Covid-19 guidelines for church meetings. We anticipate opening the restaurant, performing arts area and administrative offices in late summer 2021, and we continue to seek donations to complete the conversion of the warehouse building into our multi-purpose site.
The Rising Café at the Coventry Cathedral was closed in March 2020 due to renovations the Cathedral was making to the property. The Cathedral wanted the café to return when renovations were finished around March 2021. However, due to major damage to the café area during renovations, Betel will not be re-opening the café in Coventry.
After the Nottingham centre obtained permission to build a new men’s house on their main property in October 2019, significant donations (including associated gift aid tax reclaimed) totalling £344,300 were received in 2020 to begin the construction project. An additional £687,500 in donations and grants have been received in 2021, and the property is well on the way to completion without additional financing.
In April 2021, the directors of the Birmingham centre identified a care home property under auction for use as a residence for our recovering women. We obtained an agreement to purchase the property before going to auction and completed the purchase in May 2021 using equity in existing HSBC property mortgages to finance it.
26
27 Statement of Financial Activities, year ended 31st December 2020, by Centre
| Incoming Resources Incoming resources from generated funds Voluntary Income Donations Activities for generating funds Incoming resources from charitable activities Shop Income Other Therapeutic Work Total incoming resources from generated funds and charitable activities Investment Income Other Incoming Resources Total Incoming Resources Resources Expended Cost of generating funds Fundraising and Publicity Charitable Expenditure Grants Payable Shop Expenditure Other Therapeutic Work Centre Expenses Governance Costs Total Charitable Expenditure Total Resources Expended Net Income for the year before transfers Central Office Transfers Net Income after central office transfers* |
Birmingham Nottingham Derby Manchester Hexham Motherwell Central 2020 2019 £ £ £ £ £ £ £ £ £ 2,441,297 646,491 230,892 144,560 161,868 53,206 - 3,678,314 1,364,772 58,153 31,518 57,866 30,017 8,300 10,162 - 196,016 568,523 406,763 215,370 287,388 111,568 217,301 1,279 - 1,239,669 1,415,157 430,602 461,948 515,110 147,522 243,881 156,451 - 1,955,514 2,078,092 |
|---|---|
| 3,336,815 1,355,327 1,091,256 433,667 631,350 221,098 - 7,069,513 5,426,544 674 45 236 74 41 10 - 1,080 1,298 63,618 78,836 70,676 31,561 78,711 1,422 - 324,824 191,988 |
|
| 3,401,107 1,434,208 1,162,168 465,302 710,102 222,530 - 7,395,417 5,619,830 |
|
| 28,999 7,050 4,791 2,814 3,458 2,096 - 49,208 74,054 |
|
| 26,494 18,714 28,739 9,559 16,153 5,838 119,890 225,387 286,663 384,173 177,807 330,196 129,417 170,560 6,436 - 1,198,589 1,531,125 234,157 212,760 268,457 100,052 159,953 53,560 - 1,028,939 1,176,040 709,767 451,314 246,822 128,115 222,257 137,503 - 1,895,778 2,256,732 10,452 4,844 3,936 3,558 2,632 2,001 - 27,423 27,338 |
|
| 1,365,043 865,439 878,150 370,701 571,555 205,338 119,890 4,376,116 5,277,898 |
|
| 1,394,042 872,489 882,941 373,515 575,013 207,434 119,890 4,425,324 5,351,952 |
|
| 2,007,065 561,719 279,227 91,787 135,089 15,096 (119,890) 2,970,093 267,878 (19,422) 3,122 (46,785) (17,028) (28,848) (10,929) 119,890 - - |
|
| 1,987,643 564,841 232,442 74,759 106,241 4,167 - 2,970,093 267,878 |
*** for Centres: Grants payable are Gifts to Individuals. for Central: Grants Payable are gifts to support organisations with similar aims as Betel. (e.g. Betel in India) Central Office Transfers are to/from a 'Central' pool - negative figures are contributions to this pool, positive figures are withdrawals from. Nothing is left in this central pool at year end.*
27
28 Balance Sheet at 31[st] December 2020, By Centre
| Fixed Assets Tangible Assets Intangible Assets Current Assets Stocks Debtors Cash at Bank and in Hand Creditors: amounts falling due within one year Net Current Assets Total Assets less Current Liabilities Creditors: amounts falling due after more than one year Net Assets Funds Unrestricted Funds Restricted Funds Total Funds |
Birmingham Nottingham Derby Manchester Hexham Motherwell 2020 2019 £ £ £ £ £ £ £ £ 5,930,924 1,865,784 1,056,631 574,106 387,057 901,165 10,715,667 7,793,454 667 - - - - - 667 - |
|---|---|
| 5,931,591 1,865,784 1,056,631 574,106 387,057 901,165 10,716,334 7,793,454 |
|
| 58,245 68,891 56,844 8,300 102,923 192 295,395 297,840 126,120 46,732 38,958 35,048 35,393 3,149 285,400 288,652 412,080 395,630 287,780 144,062 68,693 23,375 1,331,620 951,491 |
|
| 596,445 511,253 383,582 187,410 207,009 26,716 1,912,415 1,537,983 705,831 200,983 52,208 35,578 81,383 74,216 1,150,199 677,767 |
|
| (109,386) 310,270 331,374 151,832 125,626 (47,500) 762,216 860,216 |
|
| 5,822,205 2,176,054 1,388,005 725,938 512,683 853,665 11,478,550 8,653,670 1,747,870 1,293,349 471,764 - 238,782 514,345 4,266,110 4,411,323 |
|
| 4,074,335 882,705 916,241 725,938 273,901 339,320 7,212,440 4,242,347 |
|
| 4,100,647 691,790 916,241 700,656 273,901 338,220 7,021,455 4,138,757 (26,312) 190,915 - 25,282 - 1,100 190,985 103,590 |
|
| 4,074,335 882,705 916,241 725,938 273,901 339,320 7,212,440 4,242,347 |
28