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2020-12-31-accounts

Company Number: 4157379 Charity number: 1086179 (England) SC042906 (Scotland)

Alpha International

(A charitable company limited by guarantee)

Trustees' report and Financial statements

For the year ended 31 December 2020

Alpha International

Contents

Page
Trustees' report 1-10
Independent Auditor's report 11-14
Statement of financial activities 15
Balance sheet 16
Cashflow statement 17
Notes to the financial statements 18-31

LETTER FROM THE CHAIR

We have been amazed at how God has used Alpha in unexpected ways over the past year. Despite the many obstacles that COVID-19 presented, we saw significant growth in Alpha courses and participants around the world. Through Alpha, hundreds of thousands of people were given an opportunity to experience the love of Jesus and to find hope and meaning in their lives during a hugely challenging time.

Alpha Online has opened the way for guests to explore the big questions of life from their own home, and we remain committed to providing the best possible resources – new content, training and support – to help churches run courses online and in person. We also began the development of, and have piloted, a new Alpha Online platform developed specifically to facilitate a great online Alpha experience. We anticipate the global launch of the new Alpha Online platform later this year and we are already working on the next version of the Alpha Film Series.

The launch of the new Marriage Course film series at the start of the year was timely and instrumental in reaching thousands of couples, primarily online.

Furthermore, we rolled out the new Bible in One Year app and launched the Leadership Conversations podcast.

This review highlights some of Alpha’s global impact over the past year.

Our passion for unity continues to underpin all that we do. It is wonderful to see people encountering Jesus through so many different denominations and church networks.

We are hugely grateful and really excited to see what God will do in the year ahead. We cannot thank you enough for your prayers and support which make all this possible.

With very best wishes,

Nicky Gumbel Chairman of Alpha International

Alpha International (A charitable company limited by guarantee)

Trustees’ report for the year ended 31 December 2020

The Trustees, who are also directors of Alpha International, are pleased to submit their annual report and audited financial statements for the year ended 31 December 2020. The Trustees have adopted the provisions of the Statement of Recommended Practice “Accounting and Reporting by Charities” Charities SORP (FRS 102), the Companies Act 2006 and applicable UK accounting standards in preparing the annual report and financial statements of the charity.

Reference and administrative information

Full name of charity Alpha International
Directors/Trustees The Revd Nicky Gumbel
Miss Tricia Neill
Mr Bernard Mensah
The Right Revd Sandy Millar
Mr John Mackay
Mr Chris Sadler
Dato Hong Yeoh
Mrs Rebecca Stewart
The Revd AI Gordon
Mr Michael Timmis
Datuk Kathleen Chew (joined 29 April 2020)
Mr David Gardner
Mr Bobby Gruenewald
Secretary Mr Jon Shippen
Company number 4157379
Charity number 1086179 (England)
SC042906 (Scotland)
Registered office and address HolyTrinityBrompton, Brompton Road, London, SW7 1JA
Bankers National Westminster Bank, 186 Brompton Road, Knightsbridge, SW3 1HL
Auditors Moore Kingston Smith LLP, Devonshire House 60 Goswell Road London,
EC1M 7AD

STRUCTURE, GOVERNANCE AND MANAGEMENT

Alpha International is governed by its Memorandum and Articles of Association and is constituted as a company limited by guarantee (number 4157379) and a registered charity (number 1086179 (England); SC042906 (Scotland).)

There are six members of Alpha International who appoint new trustees on the recommendation of the existing trustees. New trustees are provided with guidance explaining their role and responsibilities as Trustees of the charity. All new trustees are fully briefed on the worldwide activities and vision of Alpha International and they pursue the independent interests of the charity notwithstanding their separate responsibilities in other organisations.

Alpha’s vision is the re-evangelisation of the nations, the revitalisation of the church and the transformation of society. The mission is to equip and serve the church in its mission to help people discover and develop a relationship with Jesus. Alpha’s 5-year goal, outlined in 2018, is to double the number of actively engaged churches running Alpha by 2022. Alpha International operates within a Federated Partnership. Over 45 countries have locally staffed offices called National Alpha Offices (NAOs). They work closely with their regional teams and the global team to grow Alpha in their context, train leaders, support hub churches and translate resources.

The Board meets formally four times per year to discuss and approve major strategic matters, including the annual budget. This year, the Board established a Finance and Risk sub-committee, which will meet four times per year in advance of each Board meeting. There is regular contact and consultation with trustees outside of board meetings on matters arising.

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Alpha International (A charitable company limited by guarantee)

Trustees’ report for the year ended 31 December 2020

The joint arrangement with Alpha Canada, which commenced in 2003, continues to enable the parties to conduct activities effectively by pooling resources. The joint committee supervises, directs and manages this arrangement. The incoming resources provided by Alpha Canada for the year ended 31st December 2020 were £408,740 (2019, £345,676). Note 19 to the financial statements details this and other related party transactions.

Alpha International was created to carry on the charitable work that Holy Trinity Brompton (HTB), an Anglican Church in London, had commenced beyond its own parish boundaries. The rooting of Alpha within a church community is integral to the values of Alpha, which is always intended to be ‘by the church, for the church and through the church’. HTB and Alpha International operate a shared services model for some of the support and back office functions, which is fully detailed in the accounting policies (Note 1). Further details relating to transactions with HTB and other related parties are shown in Note 19 to the financial statements.

In shaping our objectives for the year and planning our activities, the trustees have considered the Charity Commission’s guidance on public benefit, including the guidance ‘public benefit: running a charity (PB2)’.

The trustees believe that Alpha provides a benefit to the public by:

The trustees are committed to maintaining the highest legal and ethical standards in the way the charity undertakes its fundraising activities. All fundraising takes place in-house and the charity does not use any external fundraisers or commercial participators. AI is registered with the UK Fundraising Regulator and committed to abide by the Code of Fundraising Practice and to the Fundraising Promise.

Alpha International takes precautions in our fundraising to ensure the protection of the public, including vulnerable persons from unreasonably intrusive or persistent fundraising approaches, and undue pressure to donate. Our fundraising team take seriously any expression of dissatisfaction we receive regarding our fundraising practice and aim to resolve any complaints as quickly as possible. Our policy is to escalate the issue internally to the Alpha International Chief Executive Officer. In the event that the complaint cannot be resolved, it will be further escalated to the Chair of the board of trustees, who will nominate an independent trustee to consider the merits of the complaint and any resulting actions. If necessary, we will contact the Charity Commission for advice and guidance. In addition, in the last year, Alpha International has completed a new Gift Acceptance Policy to protect the charity against bribery, money laundering and corruption, and association of the charity to unfavourable sources of funds. During the 2020 financial year, there were no fundraising complaints.

Alpha International is committed to ensuring the careful use of data in line with General Data Protection Regulations (GDPR) and monitors the use of data, particularly in regard to donor data for fundraising purposes. Our Privacy Policy covers how we use this data and gives donors the option to opt out of any contact or make a formal complaint. As a global organisation we monitor the relationships we have with donors across the world and seek to maintain a consistent standard of stewardship based on the guidance of the Code of Charity Commission and Fundraising Regulator Practice and the Fundraising Promise.

Objectives and Activities

Alpha International’s activities include the Alpha course, The Marriage Courses, Leadership Conference and Bible in One Year. Internationally, the approach of Alpha and other related ministries includes:

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Alpha International (A charitable company limited by guarantee)

Trustees’ report for the year ended 31 December 2020

Remuneration Policy

At Alpha International we place great value on our highly talented, dedicated and passionate staff team, without whom we could not deliver against our vision, mission and goals. Our remuneration policy is aimed at ensuring that pay is competitive within our sector, rewards staff fairly and enables the staff team to feel valued. Our Principle is to reward staff, irrespective of seniority, informed by the following:

The HTB Group entities (HTB, Alpha International, the Church Revitalisation Trust and St Paul’s Theological Centre) operate in close co-operation and within a shared operating model, including a harmonised pay and benefits structure for staff employed within the group entities. Whilst staff compensation is the responsibility of each entity board, authority is delegated to the Remuneration Committee (RemCo) to oversee group-wide remuneration. At least one representative of each entity sits on the RemCo. The purpose of the RemCo is to ensure that pay and benefits across the group are consistent, fair and aligned for equivalent roles.

In this coming year, Alpha International seeks to create a global AI Remuneration Committee (Global AI RemCo) responsible for the governance and risk management of all staff globally. This Global AI RemCo will be independent of the Group RemCo, and as such, AI pay and benefits will therefore now come under its authority and scrutiny rather than that of Group RemCo.

STRATEGIC REPORT

Achievements and Performance

Alpha’s achievements in 2020 include:

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Alpha International (A charitable company limited by guarantee)

Trustees’ report for the year ended 31 December 2020

Underpinning all of our achievements this year is Alpha’s swift response to the global pandemic in 2020. Across the organisation globally, fuelled by an entrepreneurial, innovative, and collaborative spirit amongst our global, regional, and national teams, the pivot to supporting churches running online Alpha courses has been remarkable.

Church Engagement Framework strategy

The Church Engagement Framework (CEF) Strategy provides the roadmap for how we work as an organisation and brings a necessary focus to achieving our ambitious goal of doubling the number of churches around the world running effective Alphas by 2022. The framework maps the journey of a church as they progress from Exploring to Experiencing and then Extending Alpha. Over 2020, the CEF Strategy has helped us to pivot and successfully adapt to the changing landscape caused by the COVID-19 pandemic, whilst maintaining our core value that Alpha is "by the church, for the church, through the church”.

In 2020, this framework has helped Alpha to focus on developing strategies to practically engage with churches in a digital capacity. Each month the Global E Leads (Explore/Experience/Extend) hosted calls with the Regional E Leads to focus on sharing innovation, training, resources, ideas and learnings globally. In June, we hosted the CEF Forum online bringing together all our Regional Directors and E Leads, Executive Committee and Global E Leads, enabling those present to learn from one another, refine their strategies for the rest of 2020 and to ensure they were resourced to continue to develop and contextualise the CEF strategy within their regions.

During 2020, the Explore and Marketing teams worked closely to develop key assets that helped churches to engage with and run Alpha well online. In August and September assets were created for a global campaign to re-engage churches to run Alpha online, which regions could contextualise. A key focus of the Explore strategy has been to continue to grow Alpha as a leading voice on evangelisation, communicating Alpha as a culturally relevant resource for this generation. Through the pandemic there have been many opportunities for Alpha voices to speak at numerous online conferences and podcasts. Large Regional online conferences have been hosted by our teams in Africa, Latin America and Asia Pacific. In November, the Leadership Conversations with Nicky Gumbel podcast was launched to encourage, equip and inspire Christian leaders, bringing hope and vision during a time of global complexity.

As Alphas across the world moved online early in 2020, the Global, Regional and National Experience Leads worked to ensure that online training content was relevant and engaging for churches. Our aim is to ensure that our training is user friendly, geared to make the church’s work easier, and to train churches to run high quality Alphas. The 7 Good Practice videos were produced to ensure that churches were fully equipped to run high quality Alphas online. New Alpha Team Training videos and scripts were developed for online and in person training, which were shared globally with content that could be contextualised by regions and offices. Our ability to offer excellent training and ongoing support to churches leads to a higher retention rate and positively impacts the culture of evangelism within the local church. In September, we rolled out the Post Alpha Survey to Regions and NAOs offering churches the opportunity to answer key questions about their Alphas and giving NAOs the opportunity to provide support in a more bespoke way to churches.

Each region and NAO has worked to identify and equip Hub churches that are uniquely positioned to influence other churches, are committed to running Best Practice Alphas and have the vision to help other churches to run Alpha. As part of the Extend work we hosted a 3-day Alpha Collective event at HTB in January with 103 Strategic Church leaders from around the world attending. This was followed by Asia Pacific hosting a Regional Alpha Collective in February which was attended by 39 pastors. We also hosted two online Alpha Collectives for Strategic Church leaders in October 2020 which was attended by over 260 guests from around the world; speakers included Nicky Gumbel from HTB, Miles

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Alpha International (A charitable company limited by guarantee)

Trustees’ report for the year ended 31 December 2020

Toulmin from HTBB, Kuala Lumpur and Ger Jones from Vintage Church, LA. It was a truly global event and is being run again in February 2021. GLeN, The Global Leaders Network, for emerging leaders from around the world was run virtually for the first time in June, with 281 guests attending, and then again in October, with 236 guests attending. It provided the opportunity for a series of curated conversations with the world's most influential thinkers and church leaders; speakers included Nicky Gumbel, Mark Sayers, Nona Jones, NT Wright and Glenn Packiam. Despite the challenges of 2020, the target for the number of Hub Churches was 264 and by the end of the year there were 253.

During 2020, the CEF Strategy has provided a clear framework and has fostered innovation, creativity and collaboration globally through the sharing of ideas and best practices, giving us the agility to pivot in challenging and uncertain times, as we seek to equip and serve the church in its mission to help people discover and develop a relationship with Jesus.

Global Governance

The Global Governance and Risk team have spent significant time in 2020 shoring up our internal systems for managing risk across the organisation. New committees have been formed to enable cross team collaboration around key areas including: safeguarding, data protection, information security, internal financial grant management systems and insurance and procurement. In addition, our Impact team spent time training and enabling our regional teams to ensure continuity across our metrics and designing surveys to assess our outcomes and measure against our goals – especially around year end 2020 data.

Digital

Alpha Online Platform

In response to the COVID-19 pandemic, churches running Alpha shifted to online methods using Zoom and other applications. In parallel to supporting churches running Alpha on any online platform, a team at Alpha began exploring more fit-for-purpose online platform solutions, ultimately deciding to begin development on our own bespoke platform, the Alpha Online platform. We piloted the platform with a small group of churches in late 2020, and we are planning to launch the Alpha Online platform to churches more broadly in September 2021. We are excited to see how this platform can serve churches to expand their reach in sharing the gospel through Alpha Online.

MyAlpha

Our digital registration platform was focused this year on supporting churches running Alpha online. We recognized an opportunity to build a more robust system as the number of courses and users interacting with our platforms scaled up, and we began research into a new Enterprise-level database and integration architecture that will serve all of our systems. Internally, this is called “Project Revelation” which will serve us well as we continue to grow.

Catholic Context

In 2020, the Catholic Context team continued to support and equip the Catholic coordinators within regional teams, to help them to respond to the COVID-19 pandemic and quickly adapt to running Alpha online. This was accomplished primarily through facilitating trainings, resources and strategic discussions on the Catholic narrative for running Alpha online. Whilst there have been many difficulties for Catholic churches to respond quickly, it has also been recognised that this is a significant moment for the church and a great opportunity to help parishes become more missionary focused.

In 2021, we will continue to focus on the Church Engagement Framework as a means to grow the number of Catholic churches running Alpha in person and online over the long term. We will continue to invest in Alpha’s partnership with Divine Renovation Ministry, working collaboratively on global webinars and conferences. Alpha will also continue to work closely with Divine Renovation Network parishes to develop them as Hub churches.

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Alpha International (A charitable company limited by guarantee)

Trustees’ report for the year ended 31 December 2020

Revised Brand Guidelines

Following feedback of the need to simplify and clarify the Alpha brand guidelines, Alpha set out to create revised guidelines for both local Alpha offices as well as churches. Three key components of these guidelines were 1. Reduce the design options to create a more holistic look globally, 2. Include guidance for photography and video to ensure the heart of Alpha is accurately depicted visually and 3. Include creative direction for Alpha events run by Alpha offices and churches. With events moving online and more accessible than ever for people to join from across the globe, we saw an increased importance in making sure naming and design elements were cohesive across countries. We pray these new guidelines will create a momentum behind Alpha that increasingly draws more and more people to come to know Christ.

Leadership Conversations with Nicky Gumbel Podcast

2020 was arguably one of the most challenging years for church leaders. As an organization we began to really think and pray about what we could provide to encourage and inspire leaders in their ministry. In October 2020 Alpha launched the Leadership Conversations with Nicky Gumbel podcast with the aim of providing leaders with practical, helpful, and inspiring content around the themes of evangelisation, cultural transformation, and the future of the global Church. We are honoured to have had guests such as Tim Keller, Michael Todd, Craig Groeschel, Jackie Pullinger, and more. As the listener base grows, the podcast serves as a great way to gain awareness of Alpha through mentions in the podcast. Alpha develops marketing assets for each episode which are then shared via Alpha social channels (organic and paid), email databases, and websites.

Alpha Online Content

As the world shut down and everything moved online, a large amount of marketing collateral was created to train churches on how to run Alpha online as well as assets for churches to use. The training material focused around what platforms to use, common questions, and common concerns church leaders have around running Alpha online. We then created assets to help churches invite guests through social, email, and text. We created them in a way that meant local offices, as well as churches, could swap in their own photography to bring as localized a feel as possible.

The Marriage Courses

The Marriage Courses remake was officially released in January 2020 with regional launches taking place over the course of 2020 and early 2021. The new series, consisting of 7 episodes of The Marriage Course, 5 episodes of The Pre-Marriage Course along with journals and Leaders’ Guides for both courses, has been very well received. The COVID-19 pandemic has led to many churches shift to running courses online and the new content has made this not only possible but positive. Having received generous donations, the team have been focusing on translation to make the product more widely available.

The Bible in One Year

The Bible in One Year engages over 1 million readers across the Alpha and YouVersion apps. The original app, developed by Alpha, needed to be updated due to impending obsolescence and lack of data visibility. The team developed and launched a new app on 1 January 2021. Further development in 2021 is needed to ensure the app is robust and that Alpha can continue to provide engaging and relevant daily content to a new and existing user base.

Alpha Film Series 1.75 & 2.0

A review of the series in 2019 identified sequences that required urgent updating to either correct errors or improve delivery. While the COVID-19 pandemic prevented filming new content, archive footage allowed implementation of these changes. A total of 12 changes were made to the series and the new version of the film series (known internally as AFS

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Alpha International (A charitable company limited by guarantee)

Trustees’ report for the year ended 31 December 2020

1.75) will be available for release from March 2021. Initially this new version will only be available in English, but international masters will be available to regions who wish to translate - the cost for doing so will be lower as most of the content from the existing series is modular and therefore transferable.

The relaxation of lockdown restrictions in the summer of 2020 allowed completion of the filming of new vox pop sequences for the English version. These sequences were trialled at HTB during the autumn term and have now been approved for use globally. We have also identified this as a way of providing ongoing refreshes to the series and look forward to filming more vox pop sequences when restrictions allow.

Combined, the sequence swaps and vox pop refresh form Alpha Film Series 1.75. We feel these changes will elongate the lifetime of the product until AFS 2.0 has been produced.

Running concurrently to the series refresh, was a project to insert discussion breaks into the film series in the same way that has been done with the Alpha Youth Series. This new version of the series, Alpha Film Series 1.75D, also features the updated content from AFS 1.75. Evidence suggests that in some regions churches and groups are choosing to use the Alpha Youth Series when running their adult courses as they prefer to have the discussion questions presented in this way. By delivering this version of AFS, our hope is to redirect churches back to a product which is targeted at their demographic. Alpha Film Series D is now complete and will be rolled out from March 2021 to English speaking countries who request it. As part of the rollout, we will be looking to measure how successful the product is, to help with future product development.

Work started on AFS 2.0 in January 2020, but the arrival of COVID-19 meant that development was put on pause in March and it was decided that the project would be restarted early 2021. The consequences of the pandemic could impact the narrative and creative presentation of a new film series; therefore, we decided to reengage in a post COVID19 world. Pre-development has been completed and the 2019 plan is still in place. This includes:

Future Plans

In 2021, Alpha will focus on:

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Alpha International (A charitable company limited by guarantee)

Trustees’ report for the year ended 31 December 2020

Financial Review

Results for the year

Alpha International closed the year with an operating surplus of £642,124 (2019: deficit of £244,271). This surplus was chiefly due to restricted donations received towards the Asian Alpha Film Series project not spent in the year. £1,629,671 of these unspent restricted funds have been carried forward to be spent in 2021. Cash in hand at the end of the year amounted to £3,728,755, an increase of £1,563,028 over 2019, which was chiefly due to unspent restricted funds.

Income derived from voluntary donations for the year was £11,080,777 compared to £11,238,178 in 2019. Income from other sources (sales, conferences, royalties, and interest receivable) was £629,629 compared to £1,297,330 in 2019. This decrease in income from other sources is due to Leadership Conference 2020 being cancelled. Expenditure decreased by 13%, totalling £11,068,626 in 2020 compared to £12,779,779 in 2019. The decrease in total expenditure was driven by decreased spend due to the pandemic as well as Leadership Conference being cancelled.

General Funds & Reserves Policy

The Trustees believe that Alpha International is reliant on God’s provision for the financial resources that it needs to fund its work. Consequently, the policy of the charity is not to build up significant reserves; and wherever possible to expend income received during the course of each financial year on its purposes. However, in order to ensure that the charity is able to manage its operational cashflow needs, the Trustees aim to hold working capital sufficient to cover between one- and two-months’ expenditure. Free reserves at 31 Dec 2020 were £1,176,947 (2019, £1,568,930) which represents roughly one months’ working capital requirement based on the 2021 budget.

Specified Funds

Specified funds (restricted funds) comprise donations given for the use of Alpha in a particular geographical area or for a particular ministry purpose. At 31 December 2020 these amounted to £1,629,671 (2019, £816,573).

Policy on grants

The board’s policy is to pursue its charitable objects by making supportive grants to charities with similar objectives where that is the most effective approach. Most of these grants are sent to other National Alpha Offices around the world, who are ideally equipped to support and grow Alpha and the related ministries in their local contexts. Grants totalling £3,392,933 were made during the year (2019; £2,491,485).

Trustees' responsibilities

Company law requires the directors to prepare accounts for each financial year which give a true and fair view of the state of affairs of the charity as at the end of the financial year and of the surplus or deficit of the charity for that year. In preparing these accounts, the Trustees (who are also directors of the charity) are required to:

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Alpha International (A charitable company limited by guarantee)

Trustees’ report for the year ended 31 December 2020

The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charitable company and to enable them to ensure that the financial statements comply with the Companies Act 2006, the Charities and Trustee Investment (Scotland) Act 2005 and the Charities Accounts (Scotland) Regulations 2006 as amended by The Charities Accounts (Scotland) Amendment (No. 2) Regulations 2014. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities

Risk Management

The trustees have conducted a review of the major risks to which the charity is exposed. A risk register has been established and is reviewed by our senior leadership and is updated at least annually. Where appropriate, systems and procedures have been established to mitigate the risks that the charity faces. Procedures are in place to ensure compliance with health and safety of staff, volunteers and visitors. In 2020, our governance team implemented a comprehensive risk management system which will be reviewed quarterly and will be managed at a global, regional and national level to help us ensure we are aware of risks and able to take effective action in a timely manner.

The trustees have considered the potential impact of COVID-19, and the various measures taken to contain it, on the operations of the organisation in the near future. Clearly, significant restrictions on public gatherings in many countries globally has had a dramatic effect on the ability of churches to run in-person Alpha courses. Alpha’s response has been to adapt quickly by facilitating and promoting Alpha Online. Alongside this we have launched working groups to investigate a long-term platform solution for running Alpha Online. The trustees will keep the potential financial effect under constant review and steps have already been taken to reduce costs in order to mitigate against any drop in income.

The schedule of major risks and mitigations identified by the board is set out below.

Risks Mitigations
1. Reputation of AI is damaged by
actions of senior leadership or
staff members.		 •
Organisational values are clearly defined and regularly
communicated, and oversight structures are in place for senior
leaders and staff.
•
Strong risk management framework to mitigate against reputational
risks thatpose threats to the organisation.
2. Inadequate plans for succession
in relation to key roles jeopardise
the future of the organisation and
of Alpha.		 •
The creation of three new management committees to help us
identify clear lines of authority and spread responsibility across a
wider group within the organisation. These groups include an
executive level group (ExCo) which meets fortnightly and two
operational management groups (Global Central Functions and
Regional Operational Leads)which meet monthly.
3. Network around the world based
heavily on relationships rather
than legal frameworks with
potential for poor brand and
product control and risk of
reputational damage.		 •
In 2020 we worked to support our colleagues in the National
Offices to align our work around our Church Engagement
Framework strategy and ensure we are working towards a global
goal which is measured and analysed through our Impact
measurement work.
4. AI Board governance is not
properly managed resulting in
poor decision-making, lack of
compliance with regulatory
requirements and reputational
damage.		 •
A board governance subcommittee oversees AI’s board
governance. In addition, the governance team is active in helping to
put in place additional support for our board to become more
rigorous in self-monitoring.
•
We report on our risk through a global dashboard which we use to
record risk and mitigating actions and work closely with the board
subcommittee on these issues.

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Alpha International (A charitable company limited by guarantee)

Trustees’ report for the year ended 31 December 2020

5.
Lack of adequate disaster
recover planning exposes the
organisation to risks from which it
is unable to recover in the event
of a disaster.		 •
Key IT systems are set to failover between head office and backup
site in the event of disaster, with extra cold site available outside of
London. Cloud-based systems will remain available as servers
dispersed across the UK and Europe and reliant only on an internet
connection.
•
Critical data and key systems subject to robust backup process and
internal/external monitoring. Security in place to detect, report on,
and eliminate threats.
6.
Information or communications
technology compromised, or
critical data lost through cyber
attack		 •
Significant investment continues to be made in digital architecture
and IT security to provide a robust and resilient platform. Cyber
insurance is in place to cover us in the event of cyber-attack,
cybercrime, data breach or loss of business income.
7.
Exposure to large fines and
reputational damage due to data
protection breaches		 •
In addition to an organisation wide GDPR group, Alpha
International has formed its own GDPR group to help manage
global relationships and ensure compliance.
•
On-going training and upskilling of staff.
•
Solicitation of outside advice when necessary to ensure full
understanding of the need for compliance as a global organisation.
•
Increased our indemnityand liabilityinsurance coverage.
8.
Lack of sufficient income and/or
inadequate cashflow results in an
inability to meet salary and
creditor payments.		 •
Alpha holds 1-2 months’ reserves to cover cashflow fluctuation.
•
The funding pipeline is closely monitored, and action taken where
there are concerns that funding will not match expenditure during
theyear and we are seekingto diversifyour fundingsources.
9.
The COVID-19 pandemic is
causing significant operating
challenges and could impact
Alpha's income and/or cash flow
and events.		 •
Alpha has adapted quickly with Alpha Online.
•
All staff are working remotely.
•
Expenditure is being carefully controlled and income closely
monitored.
•
All Alpha related in-person events have been cancelled for the
foreseeablefuture

Auditors

Moore Kingston Smith LLP were appointed to carry out our audit for 2020.

The Trustees’ Annual Report is approved by the trustees of the Charity. The Strategic Report, which forms part of the Annual Report, is approved by the trustees in their capacity as directors in company law of the Charity

By order of the Board

Revd. Nicky Gumbel (Chairman) Date 30/04/2021

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INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF ALPHA INTERNATIONAL

Opinion

We have audited the financial statements of Alpha International (‘the company’) for the year ended 31 December 2020 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement and 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 FRS 102 ‘The Financial Reporting Standard Applicable in the UK and Ireland’ (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

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 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 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 other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information. 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.

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.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

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INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF ALPHA INTERNATIONAL

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the trustees’ annual report.

We have nothing to report in respect of the following matters where the Companies Act 2006 or the Charities Accounts (Scotland) Regulations 2006 (as amended) require us to report to you if, in our opinion:

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 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005 and under the Companies Act 2006 and report to you in accordance with regulations made under those Acts.

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 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.

Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud

The objectives of our audit in respect of fraud are; to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses to those assessed risks; and to respond appropriately to instances of fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both management and those charged with governance of the charitable company.

Our approach was as follows:

12

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF ALPHA INTERNATIONAL

(as amended), the Charity SORP, and UK financial reporting standards as issued by the Financial Reporting Council.

Based on this understanding, we designed specific appropriate audit procedures to identify instances of non-compliance with laws and regulations. This included making enquiries of management and those charged with governance and obtaining additional corroborative evidence as required

As part of an audit in accordance with ISAs (UK) we exercise professional judgement and maintain professional scepticism throughout the audit. We also:

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

Use of this 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 Section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005. Our audit work has been undertaken so that we might state to the company’s members 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 any party other than the charitable

13

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF ALPHA INTERNATIONAL

company and charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed.

James Cross (Senior Statutory Auditor) for and on behalf of Moore Kingston Smith LLP, Statutory Auditor

Devonshire House 60 Goswell Road London EC1M 7AD

Date: 14 May 2021

14

Alpha International

Statement of Financial Activities

for the year ended 31 December 2020

Note
INCOME
Donations and legacies
Donations under gift aid
2a)
Other donations and similar income
2b)
Charitable activities
2c), 6
Other income
2d)
Total income
EXPENDITURE
Cost of Raising funds
3a)
Expenditure on charitable activities
Strategic Leadership and Enablement
3b), 18
UK Development
3c), 18
Digital, Media and Publications
3d), 18
International Development
3e), 18
Alpha Context Development
3f), 18
Other Ministries
3g), 18
Conferences
3h), 18
Total charitable expenditure
Total expenditure
Net income/(expenditure) before gains/(losses)
Other gains
2e)
Net income/(expenditure)
Funds brought forward at 1 January
Funds carried forward at 31 December		 Unrestricted
funds
2020
£
229,410
3,926,708
4,156,118
485,671
143,958
4,785,747
956,896
1,488,031
449,933
595,910
951,113
172,185
48,958
293,695
3,999,825
4,956,721
(170,974)
54,671
(116,303)
8,728,066
8,611,763		 Restricted
funds
2020
£
177,650
6,747,009
6,924,659
-
-
6,924,659
61,251
324,077
524,686
2,020,958
2,889,176
113,155
136,130
42,128
6,050,310
6,111,561
813,098
-
813,098
816,573
1,629,671		 Total
2020
£
407,060
10,673,717
11,080,777
485,671
143,958
11,710,406
1,018,147
1,812,108
974,619
2,616,868
3,840,289
285,340
185,088
335,823
10,050,135
11,068,282
642,124
54,671
696,795
9,544,639
10,241,434		 Total
2019
£
354,580
10,883,598
11,238,178
1,269,581
27,749
12,535,508
755,051
1,927,790
1,021,594
3,454,025
3,956,152
453,786
80,810
1,130,571
12,024,728
12,779,779
(244,271)
52,642
(191,629)
9,736,268
9,544,639

All amounts are derived from continuing operations. All recognised gains and losses are included in the Statement of Financial Activities.

The Statement of Financial Activities also complies with the requirements for an Income and Expenditure Account under the Companies Act 2006. The notes on pages 18 to 31 form part of these financial statements.

15

Alpha International

Balance Sheet As at 31 December 2020

Note
FIXED ASSETS
Tangible assets
9
Intangible assets
10
Total fixed assets
CURRENT ASSETS
Stock
11
Debtors
12
Cash at bank and in hand
13
Total current assets
LIABILITIES: AMOUNTS FALLING DUE WITHIN ONE YEAR
14
NET CURRENT ASSETS
LIABILITIES: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
15
NET ASSETS
FUNDS
Unrestricted:
General
16
Designated
17
Restricted
18		 2020
£
8,877,657
-
8,877,657
43,224
1,068,452
3,728,755
4,840,431
(1,339,793)
3,500,638
(2,136,861)
10,241,434
1,188,994
7,422,769
1,629,671
10,241,434		 2019
£
9,028,396
-
9,028,396
48,404
2,335,637
2,165,727
4,549,768
(1,487,992)
3,061,776
(2,545,533)
9,544,639
1,601,710
7,126,356
816,573
9,544,639

Approved by the Board on ______ and signed on its behalf by:30/04/2021

Revd. Nicky Gumbel Chairman

The notes on pages 18 to 31 form part of these accounts.

16

Alpha International

Statement of cashflows

For the year ended 31 December 2020

Net Cash inflow/(outflow) from Operations (see note below)
Cash flows from Investing Activities
Purchase of tangible fixed assests
Proceeds from sale of fixed assets
Net increase/(decrease) in cash & cash equivalents
Increase/(decrease) in cash and cash equivalents
Cash balance brought forward
Cash balance carried forward
Note to cash flow statement
Cash flow from Operating activities
Net operating surplus/(deficit) (per Statement of Financial Activities)
Other gains
Depreciation and amortisation charges
Loss on disposal of assets
Decrease/(Increase) in stock
Decrease/(Increase) in debtors
(Decrease) in creditors due within one year
(Decrease)/Increase in creditors due after more than one year
Net Cash inflow/(outflow) from Operations
NET DEBT RECONCILIATION
Notes
1 January
2020
Cash flows
Cash at bank and in hand
13
2,165,727
1,563,028
Loans
15
(2,773,866)
354,000
Net debt
(608,139)
1,917,028		 2020
£
1,573,311
(13,916)
3,633
1,563,028
1,563,028
2,165,727
3,728,755
2020
£
642,124
54,671
149,059
11,963
5,180
1,267,185
(148,199)
(408,672)
1,573,311
Other
movements
-
-
-		 2019
£
(623,260)
(19,662)
-
(642,922)
(642,922)
2,808,649
2,165,727
2019
£
(244,271)
52,642
174,068
-
(16,492)
(977,289)
(205,277)
593,359
(623,260)
31 December
2020
3,728,755
(2,419,866)
1,308,889

17

Alpha International

Notes to the financial statements, continued For the year ended 31 December 2020

1. ACCOUNTING POLICIES

Basis of preparation

These financial statements are prepared on a going concern basis, under the historical cost convention.

The financial statements have been prepared in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102). The Charitable Company is a public benefit entity for the purposes of FRS 102 and therefore the Charity also prepared its financial statements in accordance with the 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 (The FRS 102 Charities SORP), the Companies Act 2006 and the Charities Act 2011.

The financial statements are prepared in Sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest pound.

The principal accounting policies adopted in the preparation of the financial statements are set out below.

Going concern

The trustees have assessed whether the use of the going concern basis is appropriate and have considered possible events or conditions that might cast significant doubt on the ability of the Charity to continue as a going concern. The trustees have made this assessment for a period of at least one year from the date of approval of the financial statements. In particular the trustees have considered the potential impact of a reduction in voluntary giving, which makes up a large proportion of the charity’s revenue, as a result of the coronavirus pandemic.

While the coronavirus pandemic is causing significant operating challenges and uncertainties, the impact on AI income was not significant. The global pandemic also creates opportunities towards our Digital, Alpha Online & Training activities and we continue to enjoy increasing levels of committed multi-year gifts. After consideration, the trustees have decided upon an initial modest 2021 budget (£13.57m). This will be regularly reviewed and could be adjusted if necessary.

The trustees remain confident that the targets set out in the detailed forecast are achievable and have concluded that there is a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. The Charity therefore continues to adopt the going concern basis in preparing its financial statements.

Funds

General funds represent the funds of the Charity that are not subject to any restrictions regarding their use and are available for application on the general purposes of the Charity. Funds designated for a particular purpose by the Charity are also unrestricted. The accounts include all transactions, assets and liabilities for which the Charity is responsible in law.

Restricted funds arise where the donor has specified which area of activity they wish to be supported by their gift. The Charity is not at liberty to utilise these funds to support other activity without the express permission of the donor.

The accounts include all transactions, assets and liabilities for which the Charity is responsible in law.

Income

Donations and Legacies

Donations, grants and legacies receivable are recognised only when the Charity is notified of its legal entitlement, the amount due is quantifiable and its ultimate receipt by the Charity is probable. Income tax recoverable on Gift Aid donations is recognised when the income is probable.

Income from investments

Interest entitlements on bank accounts are accounted for as they accrue.

Government Grants

Grants relating to revenue are recognised in income on a systematic basis over the periods in which the entity recognises the associated costs for which the grant is intended to compensate. This includes £135,603 of Government assistance under the Coronavirus Job Retention Scheme (CJRS) relating to staff who were furloughed due to Covid-19.

18

Alpha International

Notes to the financial statements, continued For the year ended 31 December 2020

Expenditure

Expenditure is charged to the statement of financial activities as it fall due, and is analysed according to its nature between the following categories:

Costs of raising funds Expenditure on charitable activities

As reflected in note 19 (Related Parties), a strong partnership and working relationship exists between Holy Trinity Brompton, Alpha International, St Pauls' Theological Centre, and the Church Revitalisation Trust. Shared service costs (known as Central Services) are incurred by HTB and allocated to the other charities, using the most appropriate driver.

Grants

Grants are made to charitable organisations continuing activities which accord with the objects of Alpha International, and are accounted for when due. All grants are made at the discretion of the board.

Tangible Fixed assets

These assets are depreciated on a straight line basis over their estimated useful lives. The periods used are as follows:
Computer equipment
2 Years
Other equipment
3 Years
Furniture & fittings
3 Years
Fixtures
3 Years
Buildings
50 Years
Individual items with a purchase price of £1,000 or less are written off in the year of acquisition. Land is not depreciated.
The carrying values of tangible fixed assets are reviewed for impairment in periods when events or changes in circumstances indicate that the
carrying value may not be recoverable.

Intangible fixed assets

Software costs have been capitalised at historic cost and amortised on a straight line basis over 3 years.

Current Assets

Amounts owing to the Charity at 31 December are shown as debtors after providing for amounts that it is thought may prove uncollectable.

Stock

Stock is valued at the lower of cost and net realisable value, after making provision against obsolescence for slow moving stock items.

Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less.

Employee Benefits

The costs of short-term employee benefits are recognised as a liability and an expense.

Pension scheme arrangements

The Charity operates a defined contribution pension scheme and contributions payable are charged to the Statement of Financial Activities.

Operating lease

Rentals paid under operating leases are charged to the statement of Financial Activities on a straight line basis over the lease term.

Foreign Currencies

Monetary assets and liabilities denominated in foreign currencies are translated into Sterling at rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into Sterling at the rate ruling on the date of the transaction. Exchange gains and losses are recognised in the Statement of Financial Activities.

Financial Instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments. Financial instruments are recognised in the Charity's balance sheet when the Charity becomes party to the contractual provisions of the instrument. Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

19

Alpha International

Notes to the financial statements, continued For the year ended 31 December 2020

With the exceptions of prepayments and deferred income, all other debtor and creditor balances are considered to be basic financial instruments under FRS 102. See notes 12,14 and 15 for the debtor and creditor notes.

Critical accounting estimates and areas of judgement

In preparing financial statements it is necessary to make certain judgements, estimates and assumptions that affect the amounts recognised in the financial statements. The following judgements and estimates are considered by the trustees to have most significant effect on amounts recognised in the financial statements.

(i) Useful Economic Lives

The annual depreciation charge for property, plant and equipment is sensitive to change in the estimated useful economic lives and residual value of assets. These are reassessed periodically and amended were necessary to reflect current circumstances.

(ii) Derivatives

As per FRS102 and the FRS102 Charities SORP, Alpha International is required to reflect the current fair value of its derivative contract as a liability. We have received a valuation report from our bank NatWest for the year ended 2020 and the valuation was also assessed by a third party (see note 15 for details).

(iii) Support cost allocations

A strong partnership and working relationship is enjoyed between Holy Trinity Brompton, Alpha International, St Paul’s Theological Centre, and the Church Revitalisation Trust. Shared service costs (known as Central Services) are borne by HTB and then recharged to the other charities using the most appropriate driver for each service cost type. These support costs are then allocated across charitable activities based on estimates of the resources employed by Central Services towards each of these activities.

2. INCOME
a)
Gift Aid Donations
Donations
Standing Orders
Income tax recovered
b)
Non Gift Aid Donations and similar income
Donations
Standing orders and payroll giving
c)
Income from operating activities:
Conference income
Resource sales
Royalties Income current year
d)
Other Income
Bank interest and Other income
(Loss)/Gain on disposals of assets
Coronavirus Job Retention Scheme
e)
Other gains/ (losses)
Adjustment for fair value of derivative contract (refer to note 15)		 Unrestricted
Restricted
Total
Total
funds
funds
2020
2019
£
£
£
£
146,756
133,660
280,416
201,264
36,772
8,460
45,232
82,400
45,882
35,530
81,412
70,916
229,410
177,650
407,060
354,580
3,845,642
6,689,004
10,534,646
10,771,592
81,066
58,005
139,071
112,006
3,926,708
6,747,009
10,673,717
10,883,598
370
-
370
867,671
403,688
-
403,688
311,227
81,613
-
81,613
90,683
485,671
-
485,671
1,269,581
19,293
-
19,293
27,749
(10,938)
-
(10,938)
-
135,603
-
135,603
-
143,958
143,958
27,749
54,671
-
54,671
52,642

20

Alpha International

Notes to the financial statements, continued For the year ended 31 December 2020

3. EXPENDITURE

a)
Cost of raising funds
b)
Strategic Leadership and Enablement
Global strategy
Partnerships & Governance
The Alpha Office
c)
UK Development
UK Development and advisers
Alpha Invitation
Alpha Scotland
Alpha Northern Ireland
d)
Digital, Media and Publications
Cost of sales, marketing and logistics
Resource development, web and communications
Digital
Chief Marketing Officer Office
Alpha Film Series
Marriage Courses Remake
The Innovation of Alpha
Alpha Online
CEF Training
e)
International Development
EMEA development
Latin America development
Asia Pacific development
f)
Alpha Context Development
Alpha - Prisons
Alpha - Catholic Context
Alpha - Forces
Alpha - Youth		 Direct
Grants to
NAO's
Allocated
Total
Total
Costs
& Partner
Support
2020
2019
£
£
£
£
£
801,606
-
216,541
1,018,147
755,051
1,112,569
81,236
196,068
1,389,873
1,358,723
260,327
2,460
88,184
350,971
482,124
60,645
-
10,619
71,264
86,943
1,433,541
83,696
294,871
1,812,108
1,927,790
401,568
2,000
150,206
553,774
704,746
153,750
585
-
154,335
32,472
147,660
-
35,243
182,903
200,592
65,447
-
18,160
83,607
83,784
768,425
2,585
203,609
974,619
1,021,594
364,702
-
7,079
371,781
382,621
165,565
-
115,117
280,682
575,958
190,868
-
23,085
213,953
267,307
-
-
-
-
130,827
263,788
819,798
-
1,083,586
132,833
107,216
-
13,235
120,451
1,700,976
-
-
-
-
196,793
522,074
-
24,008
546,082
-
333
-
-
333
66,710
1,614,546
819,798
182,524
2,616,868
3,454,025
663,943
740,477
243,777
1,648,197
1,271,882
148,576
304,489
26,625
479,690
446,867
118,986
1,412,122
181,294
1,712,402
2,237,403
931,505
2,457,088
451,696
3,840,289
3,956,152
130,591
-
53,403
183,994
279,768
73,644
-
27,702
101,346
100,310
-
-
-
-
70,349
-
-
-
-
3,359
204,235
-
81,105
285,340
453,786

21

Alpha International

Notes to the financial statements, continued

For the year ended 31 December 2020

3. EXPENDITURE continued
g)
Other Ministries
Marriage Courses
Mission Giving
h)
Conferences
Conference direct costs & Logistics
Total expenditure		 Direct
NAO's
Allocated
Total
Total
Costs
& Partner
Organisations
Support
Costs
2020
2019
£
£
£
£
£
114,692
9,766
40,630
165,088
15,810
-
20,000
-
20,000
65,000
114,692
29,766
40,630
185,088
80,810
267,800
-
68,023
335,823
1,130,571
267,800
-
68,023
335,823
1,130,571
6,136,350
3,392,933
1,538,999
11,068,282
12,779,779*

4. SUPPORT COSTS

The support costs associated with facilitating the work of the Charity have been allocated across the categories of generating funds and charitable activities on the basis of staff numbers responsible for each of the relevant departments, projects and activities. The analysis of support costs is shown below.

ANALYSIS OF SUPPORT COSTS
Facilities & Desk Charge
IT
Digital Estate
Finance
HR
Operations
Legal
HQ Buildings Depreciation
(Gains)/losses on foreign exchange
5. ANALYSIS OF EXPENDITURE
Cost of Raising funds
A
Charitable activities
Strategic Leadership
B
UK Development
C
Media and Publications
D
International Development
E
Alpha Context Development
F
Other Ministries
G
Conferences
H
Support Costs
Allocated Support Costs		 Depreciation of
fixed assets
Support
costs
2020
2019
£
£
£
£
-
188,079
188,079
176,414
11,420
267,871
279,291
299,646
-
10,060
10,060
21,307
-
312,404
312,404
269,050
-
178,975
178,975
171,054
7,634
153,569
161,203
272,464
-
110,607
110,607
117,135
130,005
-
130,005
130,349
-
168,375
168,375
64,781
149,059
1,389,940
1,538,999
1,522,200
Staff costs
Other costs
Total 2020
Total 2019
£
£
£
£
424,474
377,132
801,606
590,045
996,588
520,649
1,517,237
1,651,814
447,037
323,973
771,010
848,824
368,855
2,065,489
2,434,344
3,117,315
411,852
2,976,742
3,388,594
3,625,683
149,555
54,680
204,235
338,555
92,911
51,547
144,458
75,939
156,883
110,916
267,799
1,009,404
800,255
738,744
1,538,999
1,522,200
3,848,410
7,219,872
11,068,282
12,779,779

22

Alpha International

Notes to the financial statements, continued

For the year ended 31 December 2020

6. REGIONAL ANALYSIS OF SALES

6. REGIONAL ANALYSIS OF SALES
Income from Media resources and Conferences can be analysed as follows:
United Kingdom
North America and Canada
Asia Pacific
Europe, Africa, Middle East
7. AUDIT COSTS AND DEPRECIATION
Net incoming/(outgoing) resources are stated after charging
Auditor's remuneration: current year
Audit remuneration under accrual for prior year
Auditor's remuneration - other services
Depreciation (see note 9)
8. STAFF COSTS
Wages and salaries
Social security costs
Pension costs		 2020
2019
£
£
380,881
1,150,072
25,283
47,097
30,929
26,226
48,578
46,186
485,671
1,269,581
2020
2019
£
£
11,775
10,125
-
4
4,500
2,792
149,059
174,068
165,334
186,989
2020
2019
£
£
3,293,077
3,809,182
356,684
386,038
198,649
193,253
3,848,410
4,388,473

Analysis of Staff Costs and the Costs of Key Management Personnel

As disclosed in note 19 (Related Parties), there is a close working relationship between HTB, AI, SPTC, and CRT. The Central Service staff who support all of the charities with operational functions are employed by HTB, and their costs (together with the costs of their departments) are allocated across the entities using the most appropriate basis for each support service. The staff costs and information in this note includes the proportionate share of these Central Service staff, as well as the relevant share of ministry staff who split their time across the charities due to the nature of their roles.

The average monthly number of full time equivalent employees was 86 (2019: 103)

The number of employees whose total benefits (excluding pension and NI) were greater than £60K was 8 (2019:6), as follows:

£60K-£70K bracket - 4 £70K-£80K bracket - 1 £80K-£90K bracket - 1 £110K-£120k bracket - 1 £150K-£160K bracket - 1

Central Services staff are on the HTB payroll but serve HTB, AI, SPTC, and CRT- each of which bear a portion of their costs. Relevant details of their remuneration can be found in the ‘Staff costs’ note in the HTB financial statements.

23

Alpha International

Notes to the financial statements, continued For the year ended 31 December 2020

8. STAFF COSTS continued

Key Management Personnel

The key management personnel of Alpha International comprise the President of Alpha International, the Global Chief Executive Officer, and the Chief Operating Officer. The total employee benefits (including pension and Employer NIC) of the key management personnel of the Charity were £485,576 (2019: £450,438).

The key management personnel of the Central Services functions which serve HTB, AI, SPTC, and CRT comprise the Group Director of People and the HTB Group Chief Operating Officer. The total employee benefits (including pension and Employer NIC) of these key management personnel were £191,078 (2019: £174,821); but Alpha only bore a portion of these costs, £67,259 (2019:£74,797).

Redundancy/termination payments

These totalled £5,877 for the year (2019: £18,709), and include statutory payments as well as ex-gratia amounts where these were considered appropriate.

9. TANGIBLE FIXED ASSETS
Cost
Opening balance 1st January 2020
Additions
Disposals
Closing balance 31st December 2020
Depreciation
Opening balance 1st January 2020
Charge for 2020
Disposals
Closing balance 31st December 2020
Net Book Value
At 31st December 2019
At 31st December 2020
10. INTANGIBLE FIXED ASSETS
Cost
Opening balance 1st January 2020
Closing balance 31st December 2020
Amortisation
Opening balance 1st January 2020
Charge for 2020
Closing balance 31st December 2020
Net Book Value
At 31st December 2019
At 31st December 2020		 Land and
Buildings
Computer
Equipment
Other
Equipment
Furniture and
fittings
Total
£
£
£
£
£
10,517,457
97,126
135,181
10,209
10,759,973
-
10,389
3,527
-
13,916
(17,172)
(14,152)
(46,099)
(3,295)
(80,718)
10,500,285
93,363
92,609
6,914
10,693,171
1,521,842
87,784
113,940
8,011
1,731,577
130,005
11,420
7,634
-
149,059
(5,209)
(13,747)
(45,069)
(1,097)
(65,122)
1,646,638
85,457
76,505
6,914
1,815,514
8,995,615
9,342
21,241
2,198
9,028,396
8,853,647
7,906
16,104
-
8,877,657
Intellectual
Property
Total
200,000
200,000
200,000
200,000
200,000
200,000
-
-
200,000
200,000
-
-
-
-

On 31 December 2009 Alpha International contracted to buy the rights to a number of key Alpha publications. The cost of this has been amortised over a five year period with effect from 2010.

24

Notes to the financial statements, continued For the year ended 31 December 2020

Alpha International

11. STOCK
Stocks of books, DVD's and other resources for resale
12. DEBTORS
Trade Debtors
Prepayments
Sundry Debtors
Deferred Expenditure
Amount due to HTB (see note 19)
Other Debtors
Accrued Income
13. CASH AT BANK AND IN HAND
Balance attributable to restricted fund
Balance at bank and in hand
14. LIABILITIES: AMOUNTS FALLING DUE WITHIN ONE YEAR
Creditors for goods and services
Deferred income
Accruals
Taxation and Social Security
Other creditors
Mortgage finance
Financial derivative liability
Deferred Income
Deferred income comprises donations, grants & earned income received for future financial periods.
Balance at 1 January
Amount released to income
Amount deferred in year
Balance at 31 December		 2020
2019
£
£
43,224
48,404
2020
2019
£
£
104,208
88,201
59,465
214,196
1,611
23,434
7,824
80,460
15,849
243,712
8,012
4,814
871,483
1,680,820
1,068,452
2,335,637
2020
2019
£
£
1,629,671
149,753
2,099,084
2,015,974
3,728,755
2,165,727
2020
2019
£
£
177,802
250,728
346,591
391,959
303,552
329,209
73,839
68,755
27,249
36,581
354,000
354,000
56,760
56,760
1,339,793
1,487,992
2020
2019
£
£
391,959
386,670
(237,953)
(386,670)
192,583
391,959
346,589
391,959

25

Alpha International

Notes to the financial statements, continued For the year ended 31 December 2020

15. LIABILITIES: AMOUNTS FALLING DUE IN MORE THAN ONE YEAR

IABILITIES: AMOUNTS FALLING DUE IN MORE THAN ONE YEAR
Mortgage finance
Financial derivative liability
Loan		 2020
2019
£
£
1,065,866
1,419,866
70,995
125,667
1,000,000
1,000,000
2,136,861
2,545,533

In September 2011 the mortgage with National Westminster Bank plc was paid off, and a new loan of £4,605,866 was received from Trinidas Limited. This mortgage is secured on the property 5-7 Cromwell Road, and has a thirteen year term from January 2012, with the final payment due in January 2025. The amount due to be repaid in 2021, £354,000, is disclosed in note 14. The remaining balance, due to be repaid after the end of 2021, is disclosed above. No interest was payable on this mortgage for the first five years, and thereafter the lender has the option to charge interest at a rate equivalent to 1% above the base rate of National Westminster Bank plc but has opted not to do so. Further details about Trinidas Limited can be found in note 19.

'In August 2019, a second £1m loan was received from Trinidas Limited to support the working capital requirements of Alpha International and has a seven-year term from August 2019, with a repayment of £250,000 plus accrued interest (if any) at the fourth, fifth and sixth anniversaries of the date of the Agreement. The loan is fully outstanding at 31st December 2020 and disclosed above.

In November 2009 Alpha International entered into a derivative contract with Royal Bank of Scotland plc to cap the interest on a mortgage at 3% on the full outstanding balance to full term. Instalments of £14,190 are paid quarterly commencing 31 December 2009 and ending on 31 March 2023. The trustees took the view that this was a prudent commitment in the best interests of the Charity and that it provided a guaranteed low cost interest rate over the life of the loan. This mortgage has now been paid off and replaced with a different loan, but due to prevailing low interest rates in the UK market, it would not currently be beneficial to dispose of the derivative contract, and the intention is to retain it until conditions are more favourable. A total of £56,760 is due to be paid on this contract within one year. Arising from this contract, National Westminster Bank plc has a deed of priority for £600,000 secured on the property and associated assets. As per FRS102 and the FRS102 Charities SORP, Alpha International is required to reflect the current fair value of its derivative contract as a liability. As at 31 December 2020 the liability is valued at £127,755 (of which £56,760 is short term liability).

16. ANALYSIS OF NET ASSETS BY FUND
Fixed assets
Stock and debtors
Cash at bank and in hand
Current liabilities
Long term liabilities
Financial derivative liability
Fund balance		 General
Designated
Restricted
Total
Total
funds
funds
funds
2020
2019
£
£
£
£
£
12,047
8,865,610
-
8,877,657
9,028,396
1,111,676
-
-
1,111,676
2,384,041
1,994,304
104,780
1,629,671
3,728,755
2,165,727
(929,033)
(354,000)
-
(1,283,033)
(1,431,232)
(1,000,000)
(1,065,866)
-
(2,065,866)
(2,419,866)
-
(127,755)
-
(127,755)
(182,427)
1,188,994
7,422,769
1,629,671
10,241,434
9,544,639

17. DESIGNATED FUNDS

5-7 Cromwell Road Fund
Future Depreciation - Central Service Assets		 2020 Opening
Balance
Mortgage
Repayment
Property
Depreciation
Transfer from
General
Reserve
2020 Closing
Balance
£
£
£
£
£
7,039,323
354,000
(130,005)
54,671
7,317,989
87,033
-
(61,443)
79,190
104,780
7,126,356
354,000
(191,448)
133,861
7,422,769

5-7 Cromwell Road : The work on the HQ building at 5-7 Cromwell Road was completed in March 2009 and satisfied the specification of the donations given for the purchase of the property. A designated fund was established at the time in order to preserve a fund to offset the amortisation of the property and the repayment of the mortgage.

Future depreciation-Central Service Assets - as outlined in the accounting policies, HTB makes an annual charge to AI for shared staff and the use of shared facilities and service departments. Part of this charge is the depreciation on assets purchased by HTB but used across HTB, AI, SPTC and CRT as part of the Central Services support function. A designated fund was established to recognise the future value of depreciation on these assets which will be charged to AI in 2020 and beyond. This designated fund is adjusted annually to reflect the value of future years' depreciation calculated at the end of each financial year.

26

Notes to the financial statements, continued For the year ended 31 December 2020

Alpha International

18. RESTRICTED FUNDS 2020
Strategic Leadership and Enablement
Alpha Global -Int Dev
Executive Office
Governance Office
UK Development
Alpha Scotland
Alpha Northern Ireland
UK Development Fund
Media and Publications
Digital & Training
Global Comms
Alpha Film Series
Alpha Online
Marriage Course Refilm
International Development
Africa Development Fund
Asia Pacific Development Fund
EME Development Fund
Latin America Development Fund
Alpha Context Development
Alpha - Prisons
Alpha in a Catholic Context
Other Ministries
Marriage Courses
Conferences
Leadership Conference
Fundraising & Support Cost
Cost of Raising funds
Support Cost		 Opening
Income
Expenditure
Closing
Balance
Balance
2020
2020
2020
2020
£
£
£
£
-
143,967
(143,967)
-
-
53,784
(53,784)
-
-
120,369
(120,369)
-
318,120
(318,120)
-
81,991
(62,654)
19,337
-
54,376
(34,376)
20,000
-
416,933
(416,933)
-
553,300
(513,963)
39,337
-
136,508
(136,508)
-
-
141,568
(141,568)
-
666,820
1,530,705
(1,071,410)
1,126,115
-
526,763
(526,763)
-
-
105,390
(105,390)
-
666,820
2,440,934
(1,981,639)
1,126,115
4,550
334,537
(280,449)
58,638
113,007
1,684,493
(1,575,539)
221,961
31,875
795,373
(651,128)
176,120
321
325,740
(326,061)
-
149,753
3,140,143
(2,833,177)
456,719
-
39,805
(32,305)
7,500
-
78,467
(78,467)
-
-
118,272
(110,772)
7,500
-
133,747
(133,747)
-
-
133,747.00
(133,747)
-
-
40,937
(40,937)
-
-
40,937
(40,937)
-
-
60,059
(60,059)
-
-
119,147
(119,147)
-
-
179,206
(179,206)
-
816,573
6,924,659
(6,111,561)
1,629,671

27

Alpha International

Notes to the financial statements, continued For the year ended 31 December 2020

18. RESTRICTED FUNDS 2020 continued

RESTRICTED FUNDS 2019
Strategic Leadership
Alpha Global -Int Dev
President Office
Executive Office
Governance Office
UK Development
Alpha Scotland
Alpha Northern Ireland
UK Development Fund
Media and Publications
Digital & Training
Alpha Innovation/Creative
Global Comms
Alpha Film Series
Marriage Course Refilm
International Development
Africa Development Fund
Asia Pacific Development Fund
EME Development Fund
Latin America Development Fund
Alpha Context Development
Alpha - Prisons
Alpha - Youth
Alpha Forces
Alpha in a Catholic Context
Conferences
Leadership Conference
Fundraising & Support Cost
Cost of Raising funds		 Opening
Balance
Income
Expenditure Closing Balance
2019
2019
2019
2019
£
£
£
£
-
69,696
(69,696)
-
-
191,054
(191,054)
-
-
203,277
(203,277)
-
-
233,575
(233,575)
-
-
697,602
(697,602)
-
11,000
23,318
(34,318)
-
-
46,841
(46,841)
-
-
83,329
(83,329)
-
11,000
153,488
(164,488)
-
290,415
(290,415)
-
-
159,000
(159,000)
-
-
203,503
(203,503)
-
-
799,652
(132,832)
666,820
997,669
628,720
(1,626,389)
-
997,669
2,081,290
(2,412,139)
666,820
4,224
271,268
(270,942)
4,550
116,927
1,751,907
(1,755,827)
113,007
3,010
284,219
(255,354)
31,875
321
128,213
(128,213)
321
124,482
2,435,607
(2,410,336)
149,753
-
1,285
(1,285)
-
-
5,000
(5,000)
-
-
120
(120)
-
-
75,497
(75,497)
-
-
81,902
(81,902)
-
-
255,081
(255,081)
-
-
255,081
(255,081)
-
-
417,737
(417,737)
-
1,133,151
6,122,707
(6,439,285)
816,573

The funds relate to donations which have been given specifically for the work of Alpha in a particular country or region, or for a specific ministry or project being undertaken by Alpha International.

28

Alpha International

Notes to the financial statements, continued For the year ended 31 December 2020

19. RELATED PARTIES

Trustee remuneration:

Under the terms of the Memorandum and Articles of Association of Alpha International, three of the trustees received remuneration for services as employees or consultants during the year. None of the trustees received remuneration for services provided to the Charity as trustees.

The following trustees or key management personnel were directors or members of related entities or were connected to people or organisations in receipt of payments from Alpha International.

----- Start of picture text -----
Trustee & Members Related Trusteeship Remuneration for non-trustee
services
Miss Tricia Neill Church Revitalisation Trust £146,800 (2019:£128,392)
(CRT) and Church Renewal
Trust
Right Revd Sandy Millar None £19,277 (2019:£17,964),
Mr Chris Sadler Beijing Family Life £28,500 (2019: £30,000)
Dato Hong Yeoh Trinidas Limited NIL (2019-NIL)
MAD SQUARED NIL (2019-NIL)
Kathleen Chew
Alpha Malaysia NIL (2019-NIL)
Revd. Nicky Gumbel Holy Trinity Brompton,St Pauls' NIL (2019-NIL)
Theological Centre, Church
Revitalisation Trust (CRT) and
Church Renewal Trust
John D. L. Mackay Alpha USA & Alpha Canada NIL (2019-NIL)
Wife is on PCC and standing NIL (2019-NIL)
Committee of HTB and is
Church Warden
Wife is member of Church NIL (2019-NIL)
Mr Bernard Mensah
Revitalisation Trust (CRT)
Wife is a trustee of St Pauls' NIL (2019-NIL)
Theological Centre
Mr David Gardner Wife is on PCC of HTB NIL (2019-NIL)
----- End of picture text -----

Trustee Donations : Alpha International has received a total of £2,282,971 (2019: £4,179,484) in donations from Trustees and their related parties in the year. The donors did not attach any conditions to their gifts which require the Charity significantly to alter the nature of its existing activities.

Royalties. Royalties accrued to trustees of Alpha International from worldwide sales in the previous year of resources written by them. These royalties were waived by the trustees and the funds retained in the Charity. Revd. Nicky Gumbel - £11,153.98 Right Revd John (Sandy) Millar - £11.83

Alpha International enjoys a shared vision and close working relationship with National Alpha Offices (NAOs). Over 45 countries have these locally staffed NAOs who work closely with the global team to grow Alpha in their context, train leaders and translate resources. The Alpha Offices are independently constituted and are not directed or controlled by Alpha International. Where one or more directors of Alpha International are minority members of a National Alpha Office board, and where Alpha International has had transactions with that office during the year, details are provided in the table below.

29

Alpha International

Notes to the financial statements, continued For the year ended 31 December 2020

19. RELATED PARTIES continued

----- Start of picture text -----
National Alpha Office & Income Expenditure Balance owing at year end Notes
Related companies
Beijing Family Life NIL (2019- NIL) Grant- £190,656 (2019- NIL (2019- NIL)
£201,276)
Alpha Malaysia NIL (2019- Grant - £620,245 (2019- £70,000 owed by AI to Alpha
£20,667) £406,487) Malaysia (2019- NIL)
Alpha USA Royalties received Sundry expenses including £20,804 due from Alpha USA
of £25,283 (2019- staff costs £785,470 (2019- (2019- £29,443)
£16,265). £204,814)
Alpha Australia Royalties received NIL (2019- NIL) £6,840 due from Alpha Australia
of £18,273 (2019- (2019- NIL)
£12,803).
Donations received
of £9,340 (2019:
£311,634 )
ST Mellitus College Trust NIL (2019- NIL) NIL (2019-£15k Financial NIL (2019- NIL) Nicky Gumbel (a trustee of Alpha
(SMC) Support for SMC Students International) is a trustee of SMC
to attend Leadership
Conference 2019)
Trinidas Limited NIL (2019- NIL) Loan repayment £354,000 Loan outstanding £2,419,866 Dato' S H Yeoh and his wife Kathleen
(2019: £354,000) including the a second £1m loan (both trustees of Alpha International)
received in August 2019 (2019: are directors and majority
£2,773,866) see note 15 for shareholders in Trinidas Limited
details.
HTB Donations totalling N/A £15,849 due from HTB (2019: One of the HTB clergy occupies a
£250,000 (2019, £243,712 due from HTB) property owned by Tricia Neil, in
£417,837) and respect of which HTB pays rent at a
members of the market tested rate
HTB congregation
gave £646,660
(2019, £658,926)
MAD SQUARED NIL (2019- NIL) Charges to Alpha NIL (2019- NIL) Kathleen Chew (a trustee of AI), is a
International for media director of Mad Squared
services £26,806
(2019:£88,304)
Level Creative NIL (2019- NIL) £18,678 (2019-£64,324) NIL (2019- NIL) The son of Revd. Nicky Lee and Mrs
Sila Lee (both members of Alpha
International) is a Partner of Level
Creative.
Alpha Canada Joint venture Joint venture expenditure NIL (2019- NIL) Alpha International is party to a joint
income £408,740 £413,906 (2019: arrangement with Alpha Canada,
(2019-£345,676) £405,019), which commenced in 2003, and
Grants for other Grants for other projects which enables both parties to carry
projects totalling including staff costs out their objects more effectively by
NIL (2019-NIL) totalling NIL (2019-£1,672) pooling resources. The joint
committee (comprising the trustees
of Alpha International) supervises,
directs and manages the joint
arrangement. The incoming
resources provided by Alpha Canada
to the joint arrangement and the
related expenditure, is not reflected in
these financial statements, but in the
financial statements of the joint
arrangement.
----- End of picture text -----

30

Alpha International

Statement of Financial Activities

for the year ended 31 December 2019

Note
INCOME
Donations and legacies
Donations under gift aid
2a)
Other donations and similar income
2b)
Charitable activities
2c), 6
Other income
2d)
Total income
EXPENDITURE
Cost of Raising funds
3a)
Expenditure on charitable activities
Strategic Leadership
3b), 18
UK Development
3c), 18
Digital, Media and Publications
3d), 18
International Development
3e), 18
Alpha Context Development
3f), 18
Other Ministries
3g), 18
Conferences
3h), 18
Total charitable expenditure
Total expenditure
Net income/(expenditure) before gains/(losses)
Other gains
2e)
Net income/(expenditure)
Funds brought forward at 1 January
Funds carried forward at 31 December		 Unrestricted
funds
2019
£
133,085
4,982,386
5,115,471
1,269,581
27,749
6,412,801
337,314
1,230,188
857,106
1,041,886
1,545,816
371,884
80,810
875,490
6,003,180
6,340,494
72,307
52,642
124,949
8,603,117
8,728,066		 Restricted
funds
2019
£
221,495
5,901,212
6,122,707
-
-
6,122,707
417,737
697,602
164,488
2,412,139
2,410,336
81,902
-
255,081
6,021,548
6,439,285
(316,578)
-
(316,578)
1,133,151
816,573		 Total
2019
£
354,580
10,883,598
11,238,178
1,269,581
27,749
12,535,508
755,051
1,927,790
1,021,594
3,454,025
3,956,152
453,786
80,810
1,130,571
12,024,728
12,779,779
(244,271)
52,642
(191,629)
9,736,268
9,544,639

Page 31