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2021-10-31-accounts

Charity Registration No. 1095661

Company Registration No. 4566306 (England and Wales)

LEADING THE WAY EUROPE

ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 OCTOBER 2021

LEADING THE WAY EUROPE

LEGAL AND ADMINISTRATIVE INFORMATION

Council Of Management C C Wright
Dr R T Kendall
R G Waites
M A Youssef
Charity number 1095661
Company number 4566306
Principal address Unit 3 Burnt Oak Business Park
Waldron
Heathfield
TN21 0NL
Registered office Bourbon Court
Nightingales Corner
Little Chalfont
Buckinghamshire
HP7 9QS
Independent examiner James Foskett FCA DChA
Cansdales Business Advisers Limited
Bourbon Court
Nightingales Corner
Little Chalfont
Bucks
HP7 9QS
Bankers Barclays Bank plc
Leicester
LE87 2BB

LEADING THE WAY EUROPE

CONTENTS

Page
Council Members' report 1 - 4
Independent examiner's report 5
Statement of financial activities 6
Balance sheet 7
Notes to the financial statements 8 - 11

LEADING THE WAY EUROPE

COUNCIL MEMBERS' REPORT (INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 OCTOBER 2021

The Council of Management present their report and financial statements for the year ended 31 October 2021.

The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the Companies Act 2006 and “Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 201 9 )”

Objectives and activities

The objectives of the charitable company are set out in the Memorandum and Articles of Association and are to advance the Christian faith in accordance with the Statements of Beliefs therein in the United Kingdom and Europe, and in such other parts of the world as the Council of Management may from time to time deem fit, and to fulfil such other purposes which are exclusively charitable according to the law of England and Wales and are connected with the work of the charitable company.

When planning our activities for the year, the Council of Management have considered the guidance issued by the Charity Commission on Public Benefit and, in particular, the specific guidance on charities for the advancement of religion. Specifically, we provide programming that is: available to the public without charge; includes teaching on how to live a changed, responsible and moral life; that is an inspiration to help others in the local community and beyond; and teaching that promotes our viewers and listeners to be a positive Christian witness.

Leading The Way Europe began 20 years ago as a small local radio ministry and has now grown into an outreach reaching millions for Christ as we advance the Christian faith. And our unique impact continues to grow.

During the year ended 31 October 2021, Leading The Way carried out activities in accordance with its aims and objectives:

Achievements and performance

Encouraging progress has been made over the past twelve months in a number of key areas, most notably in the growth of donation income. We have continued to assemble the building-blocks for a much wider and deeper impact, with a particular focus on attempting to increase significantly the level of financial investment for further infrastructure development, as well as for ministry delivery and expansion. We have seen God's hand at work as He has opened up a number of wonderful — and unexpected —opportunities, for which we give grateful thanks.

Our main strategic focus has been in three principal areas:

  1. Raising further the profile and visibility of Dr Michael Youssef and the ministry of Leading The Way by growing strategically our PR, communications and marketing reach and impact through press releases, advertising, magazine articles, media platforms, social media, engagement with senior Christian leaders and Christian communities (churches, festivals, organisations, business).

Some particular highlights include:

LEADING THE WAY EUROPE

COUNCIL MEMBERS' REPORT (CONTINUED)(INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 OCTOBER 2021

2. Income generation

We have seen an encouraging increase in fundraising performance when compared with the previous financial year with a significant increase in both the total number of donors, and the number of new donors.

This has been attributed to a number of factors:

3. Ministry delivery as part of Vision 2025

Vision 2025 is Leading The Way’s ministry expansion programme, the aim of which is to see at least one million souls come to Christ by 2025.

Some particular highlights include:

In summary, the organisation had a successful year in all aspects of its ministry. With the continued rise in its profile and visibility, and the increase in donations from our faithful supporters, Leading The Way Europe was able to expand its outreach to proclaim the message of Christ in the advancement of the Christian faith.

Financial review

The income during the year totalled £584,369 (2020: £446,976) and expenditure during the totalled £443,597 (2020: £340,384) which has resulted in a surplus for the year of £140,772 (2020: Surplus of £106,592).

The Council of Management has established a policy whereby the unrestricted funds not committed or invested in tangible fixed assets or investments (‘the free reserves’) held by the charitable company are sufficient to meet the ongoing work of the charitable company. This policy and the levels of reserves will be reviewed from time to time. The total level of reserves at the end of the year was £383 , 97 6 (20 20 : £ 243,204 ). Based upon the Council of Management’s review, they have determined that the level of reserves at the year end were adequate for the operations of the charitable company .

LEADING THE WAY EUROPE

COUNCIL MEMBERS' REPORT (CONTINUED)(INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 OCTOBER 2021

Investment Policy

The Council of Management have the power to invest the monies of the charitable company not immediately required for the furtherance of its objectives in or upon such investments, securities or property as may be thought fit, subject to such conditions (if any) and such consents (if any) as may for the time being be imposed or required by law.

Risk Management The Council of Management have examined the major risks the charitable company faces and has implemented internal controls to prevent and detect fraud and to lessen those risks that may cause the financial statement to be materially misstated as a result of fraud.

Structure, governance and management

Leading The Way Europe is a charitable company limited by guarantee governed by its Memorandum and Articles of Association Dated 17 October 2002. The Company Registration number is 4566306 and the Charity Commission Registration number is 1095661.

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

R T Kendall R G Waites C C Wright M A Youssef

The Council of Management, which shall be not less than three, administers the charity. All trustees are invited to nominate new trustees prior to the general meeting. In selecting persons to be appointed as Trustees, the Council of Management shall take into account the benefits of appointing a person who is able by virtue of his or her personal or professional qualifications to make a contribution to the pursuit of the objects or the management of the Charity. New trustees may be appointed by ordinary resolution at a general meeting. New trustees will undergo an orientation to brief them on: their legal obligations under charity and company law, the content of the Memorandum and Articles of Association, the Charity Commission guidance on public benefit, and to inform them of recent financial performance of the charity.

The members of the charitable company are the members of the Council of Management and each member guarantees to contribute an amount not exceeding £10 to the assets of the charitable company in the event of winding up.

Covid-19

Throughout the year, the charitable company has monitored and followed Government guidance and implemented ‘lockdown’ and social distancing measures accordingly.

During periods of restricted movement or social contact, our small team adjusted well to working from home. Face-to-face meetings and events were replaced by Zoom calls. A programme of regular communication with our supporters and financial partners was instituted using phone calls, social media and email, and we were able to continue with monthly communications by post. Our organisational structure is sufficiently agile and we were able to adapt quickly to different ways of working.

As ‘lockdown’ measures eased during the course of the year, the team reverted to ‘face-to-face’ meetings and we were able to organise a number of events. Far from restricting our activities, the Covid-19 pandemic has had the opposite effect!

Because Leading the Way's ministry is predicated on communicating the Christian Gospel using modern methods of technology (TV, radio, satellite, internet, and social media platforms), and since a large proportion of the world's population has been confined to their homes for much of the time since March 2020, we have found ourselves incredibly well positioned to reach many more people - Christians and non-Christians - through our work. Given the fear, anxiety and uncertainty that so many people are now facing, and the questions of life and faith they are asking, never before in the history of Leading the Way have we had such an opportunity to reach our target audience as we do right now! The challenges experienced during this period have related more to the question of how we embrace the opportunities that are emerging, and manage the increased pace of our work .

LEADING THE WAY EUROPE

COUNCIL MEMBERS' REPORT (CONTINUED)(INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 OCTOBER 2021

The c ouncil members are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

Company law requires c ouncil members to prepare financial statements for each financial year. Under that law the c ouncil members elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice. Under company law the c ouncil members must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the c ouncil members are required to:

The council members are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The Council Members' r eport was approved by the Board of Council Of Management.

M A Youssef

Dated: 15 June 2022

LEADING THE WAY EUROPE

INDEPENDENT EXAMINER'S REPORT

TO THE COUNCIL OF MANAGEMENT OF LEADING THE WAY EUROPE

I report to the Council of Management on my examination of the financial statements of Leading the Way Europe (the charitable company) for the year ended 31 October 2021.

This report is made solely to the Council of Management, as a body, in accordance with Section 145 of the Charities Act 2011. My independent examination has been undertaken so that I might state to the Council of Management those matters I am required to state to them in an Independent Examiner's report and for no other purpose. To the fullest extent permitted by law, I do not accept or assume responsibility to anyone other than the Council of Management, for my reporting work or for this report.

Responsibilities and basis of report

As the Council of Management of the charitable company (and also its directors for the purposes of company law) you are responsible for the preparation of the financial statements in accordance with the requirements of the Companies Act 2006 (the 2006 Act).

Having satisfied myself that the financial statements of the charitable company are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of the charitable company’s financial statements carried out under section 145 of the Charities Act 2011 (the 2011 Act) . In carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.

Independent examiner's statement

Since the charitable company’s gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a member of the ICAEW , which is one of the listed bodies.

I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:

I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the financial statements to be reached.

James Foskett FCA DChA

Cansdales Business Advisers Limited Chartered Accountant & Business Advisers Bourbon Court Nightingales Corner Little Chalfont Bucks HP7 9QS

Dated: 17 June 2022

LEADING THE WAY EUROPE

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT

FOR THE YEAR ENDED 31 OCTOBER 2021

Notes
Income from:
Voluntary Income
2
Charitable activities
3
Investments
4
Total income
Expenditure on:
Raising funds
5
Charitable activities
6
Total expenditure
Net income for the year/
Net movement in funds
Fund balances at 1 November 2020
Fund balances at 31 October 2021		 2021
£
540,502
43,861
6
584,369
114,415
329,182
443,597
140,772
243,204
383,976		 2020
£
415,254
31,640
82
446,976
111,384
229,000
340,384
106,592
136,612
243,204

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

All income and expenditure derive from continuing activities. All income and expenditure is unrestricted.

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

LEADING THE WAY EUROPE

BALANCE SHEET

AS AT 31 OCTOBER 2021

Notes
Current assets
Debtors
9
Cash at bank and in hand
Creditors: amounts falling due within one year
10
Net current assets
Income funds
Unrestricted funds		 2021
£
18,326
400,466
418,792
(34,816)		 £
383,976
383,976
383,976		 2020
£
12,381
257,866
270,247
(27,043)		 £
243,204
243,204
243,204

The company is entitled to the exemption from the audit requirement contained in section 477 of the Companies Act 2006, for the year ended 31 October 2021.

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

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

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies' regime.

The financial statements were approved by the Council Of Management on 15 June 2022

R G Waites M A Youssef Trustee Trustee

Company Registration No. 4566306

LEADING THE WAY EUROPE

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

1 Accounting policies

Charity information

Leading the Way Europe is a private company limited by guarantee incorporated in England and Wales. The registered office is Bourbon Court , Nightingales Corner , Little Chalfont , Buckinghamshire , HP7 9QS

1.1 Accounting convention

The financial statements have been prepared in accordance with the Charity's memorandum and articles of association, the Companies Act 2006 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)" (as amended for accounting periods commencing from 1 January 2019). The Charity is a Public Benefit Entity as defined by FRS 102.

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

1.2 Going concern

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

1.3 Charitable funds

Unrestricted funds are available for use at the discretion of the Council of Management in furtherance of their charitable objectives.

Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.

Endowment funds are subject to specific conditions by donors that the capital must be maintained by the charitable company.

1.4 Income

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

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

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

LEADING THE WAY EUROPE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 OCTOBER 2021

1 Accounting policies

(Continued)

1.5 Expenditure

i) Expenditure is accounted for on an accruals basis, inclusive of VAT, which cannot be recovered.

ii) Where gifts in kind are made to the charitable company, a credit is made to the income of the charitable company at a valuation made by the Council of Management. If the charitable company is provided with facilities at no charge or reduced cost, the full market cost is included in expenditure with corresponding recognition of income.

iii) Expenditure is allocated to the particular activity where the costs relate directly to that activity.Where costs cannot be directly attributed to particular headings they have been allocated on a basis consistent with the use of resources.

iv) Amounts relating to management and administration costs have been apportioned to the cost centres of charitable activities and governance costs in accordance with the requirements of the SORP.

v) Governance costs comprise all costs relating to the public accountability of the charitable company and its compliance with regulation and good practice.These costs include costs relating to the Independent examiners report.

1.6 Cash and cash equivalents

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

1.7 T ax Status

The charitable company is a registered charity within the definitions of section 506(1) Income and Corporation Taxes Act 1988 and is therefore able to take advantage of the exemptions given by Section 505 of the Act.

1.8 Funds accounting

Funds held by the charitable company are:

Unrestricted general funds - these are funds which can be used in accordance with the charitable objectives at the discretion of the council of management.

Restricted Funds - these are funds which can only be used for particular purposes within the objectives of the charitable company. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.

The nature and purpose of each fund is explained further in the notes to the financial statements.

2 Voluntary Income

Unrestricted Unrestricted
funds funds
2021 2020
£ £
Donations and gifts 540,502 415,254

LEADING THE WAY EUROPE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 OCTOBER 2021

3
4
5
6		 Charitable activities
Gift aid income
Investments
Interest receivable
Raising funds
Fundraising and publicity
Other fundraising costs
Support costs
Fundraising and publicity
Charitable activities
Programme
Administration
& Support costs
Airtime,
television &
radio
Education and
Publications
Speaking
Event
£
£
£
£
Charitable expenditure
45,074
187,353
82,991
8,778
Governance Cost:
Independent Examination Fee
2,952
-
-
-
Other services
2,021
-
-
-
Share of other governance
costs
13
-
-
-
50,060
187,353
82,991
8,778		 2021
2020
£
£
43,861
31,640
Unrestricted
Unrestricted
funds
funds
2021
2020
£
£
6
82
2021
2020
£
£
1,621
16,304
112,794
95,080
114,415
111,384
Total
2021
Total
2020
£
£
324,196
223,980
2,952
2,672
2,021
1,970
13
378
329,182
229,000		 2020
£
31,640
2020
£
16,304
95,080
111,384
Total
2020
£
223,980
2,672
1,970
378
229,000

LEADING THE WAY EUROPE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 OCTOBER 2021

7 Council Of Management

Members of the Council of Management are not remunerated and there were no expense claims for Council of Management members (20 20 : Nil) There were no donations made to the charitable company from the council of management (20 20 : Nil).

There were no employees during the year (20 20 : Nil).

9
Debtors
Amounts falling due within one year:
Trade debtors
Other debtors
10
Creditors: amounts falling due within one year
Trade creditors
Accruals and deferred income		 2021
£
9,098
9,228
18,326
2021
£
30,116
4,700
34,816		 2020
£
12,381
-
12,381
2020
£
22,543
4,500
27,043

There were no disclosable related party transactions during the year ( 20 20 : none) .