## **AID TO THE CHURCH IN NEED (UNITED KINGDOM)** **Company 4747666 Registered Charity (England and Wales) 1097984 Registered Charity (Scotland) SCO40748** ## **REPORT AND ACCOUNTS** **FOR THE YEAR ENDED 31 DECEMBER 2022** ## **Aid to the Church in Need (United Kingdom) Information** **Trustees** Mr Graham Hutton (Chairman) – resigned w.e.f. 01/10/22 Mr Timothy Church (Chairman) – appointed w.e.f. 01/10/22 Archduke Philipp Habsburg Mr Justin Maciejewski Mr John Paul Marsden Ms Pauline Stuart Mr Patrick Heren **Bankers** Nat West PLC 5 East Street Chichester West Sussex PO19 1HH **Solicitors** Stone King LLP 13 Queen Square Bath Avon BA1 2HJ **Auditors** Moore Kingston Smith LLP 9 Appold Street London EC2A 2AP **National Director and Company Secretary** Caroline Hull – appointed w.e.f. 26/04/22 Neville Kyrke-Smith – retired w.e.f. 26/04/22 remained National Director Emeritus until 30/06/22 **Registered Office** Benhill House 12-14 Benhill Avenue Sutton Surrey SM1 4DA 1 Trustees, & Directors, Annual Report for Aid to the Church in Need (United Kingdom) 31 December 2022 Accounts Hfigblight5 of Aid to the Church in Need (United Klngdom) 2022 Annull Report Having led the charity for over 30 ycars, Neville Kyrke-smith retir￿ and Dr Caroline Hull was appointed as National Director of Aid to the Church in Need (United Kingdom) ('ACN (UK),) in April 2022. Thanks to the compassion of bcnefartors. ACN (UK) provided £7.855.751 iti aid through 268 prOj￿t payments in 68 countries. Priorities for aid duTing the period Includ￿.. £1.167.814 to 8UPPOrt the Chll￿h in Ukraine; funding of £2,684,088 to Christian communiti¢s in Africa, many of whom eXperIe￿e continued Viol￿ help to Church communities in Asia totalling £1.703.691' and £1.201,715 for the Middle East where we provid¢d vi¢al aid to communities suffering in Lcbanon, S)Tia and Iraq. The charity's audited income in 2022 was £12.149,467 which was up 18.6% on 2021. Donations and grants of £8,075,198 were up by 0.6/ts. Legacies received of £1,393,867 wer¢ up by 38 %; leg￿Y income receivable (due. but not yet received) of £2,326.888 was up by 190 %. Total audited legacy income equat¢d to 30.6/0 of total income. Total charity cash received, excluding booked accrned legacies where no cash was received and excluding ACN Trading Ltd income, wa5 £11,022.486 (2021 £11,571,903). a decrease of £549,417 (4.75Q/o). The reserves of ACN (UK) increased by £1,442,794 due to iwr¢ased a¢¢n￿d legacy debtors. Online activity was strong and major donor and Tegular giving income grew. Community Outreach income wa8 relatively low as the n¢w team of Community Fundraisers Settled in. Growth in this area is expe£ted from 2023 onwar(ts. ACN (UK) Invit￿ project partners Sister Anni¢ D¢rneriian from SyTia and Archbishop Bashar Warda from traq to participatc in the tKJndon 2022 Ministerial Conference on Religious Freedom. The charity lobbied Hom¢ S¢cr¢tari¢s Priti Pat¢1 and Suella Brdvernian on behalf of Mairn Shahbaz, a Christian in hiding in Pakistan. The clwity prOd￿ed Persecuted and Forgotten? A Report on Christians oppressed for their Faith. which was launched in Parliament in Novemberj guest speaker Nigerian Bish(w Aro8undade also promot￿ the c]￿lty'S petitio￿ calling for justic¢ for those Massa￿¢d at a packed church in Nigttia on 5 June 2022. ACN (UK) further strengthened all polici&8, including governance and risk management. The trustees continued to ensure the implementatioll of robust safeguarding piooedures, as well a8 the signed projcd agreements, liaising with ACN Jnternational. ACN (UK) Continu￿ to control costs carefully. Expenditure on raising ￿nds, excluding trading, for charity ¢ash r¢c¢ived was £l,057.114 which equates to 9.6p in th¢ pound (20217.3p). The main reason for this was the increase in salari&8 as 2022 was the first ￿11 year for paying Community Fundraisers. salaries. In the period. 79.50/o (202188.5fj/.) of total charity cash received was expended on the charitable puryos4 cxcluding support servi¢¢s' 71.3 /0 (202182.9/0) of clwity re¢¢ived was sp¢nt on the Grants programme in aid to persecuted and suffering Christians. Trustees, & Directors, Annual Report for Aid to the Church in Need (United Kingdom) 31 December 2022 Accounts The ttwlees and dir¢ctors of Aid to the Church in Need (United Kingdom) ('ACN (UK).) present this report for the year ended 315tDecember 2022 togetherwith the wnsolidated charity accounts. which have been auditcd by Moore Kingston Smith LLP. The financial stst¢menls have been prepared in accordance with the Financial Reporting Standard applicable in the UK and Republic of I￿lartd (FRS 102). The ch￿itable Company and ils subsidiary ar¢ a public benefit group for the purposes of FRS 102 and therefore the Charity ￿50 pr¢pared its financial statements in accordance witLI the Statement of Recommended Practice applicable to charities preparing their accounts in ￿CordanCe with the Financial Reporting StarLdard applicable in th¢ UK and Republic of Ireland (The FRS 102 Charities SORP). th¢ Compauies A¢t 2006 and Groups (Accounts and Reports) Regulations 2008 (S120081410). the Charities Act 2011 and Charities Accounts {Y¢otland) Regulations 2006 as amended by Th¢ Charities A￿Unts (Scotland) An)endment (No. 2) Regulations 2014. The trl￿e￿ have assessed whetlL¢r the use of th¢ going concern basis is appropriate atul have considered p)Ssible events or conditions that migbt cast significant doubt on the ability of the charitable group to continue as a going concern. The trustees have made this assessment for a petiod of at least one year from the date of approval of the financial staternenl8. tn particular Ihe trustces have considereAI th¢ charity's forecasts and projections and have considered the ongoing impact of the coronavirus outbreak on the viability of the thty. After making enquiries the trustees have concluded that there is a reasonablc expectation that the charity group has adequate r￿UrCeS lo continue in operational existence for the for&seeable ￿ture. The charity thcrefore continues to adopt the going conccm basis in prcparing 118 finallcial statements. The principal acwunting p)lici&q adopted in the preparation of the financial stat¢m¢nts are set out in Note l Awounting Policics. This Tn￿lee$, and DAr￿lOTS, Report fulfds legal and statutory r¢quirements, but also Sets out the activities and future plans of tbe cltrrity. Structure, governance and management of Aid to the Church in Need (Ullited Kingdom) This Catholic charity (RegistereAI ChaTity No.1097984) is a Company Limited by Guaranlee registered in England and Wales (Company No.4747666). Aid to the Church in Need (United Kingdom) is also r¢gi8tered with the Office of the Scottish Charity Regulator (SC040748). In t¢m]s of Roman Catholic Canon IAW, th¢ British section is part of th¢ intemational organisation Aid to the Church in a Pontifical Foundation. The intcrnational General Secretariat i Kiinigstein, G¢nnany, carries some administrative and project costs. as appropriate. The Stn￿ture of ACN (UK) is centred upon thc n￿l￿nal office in sutto￿ which supports th¢ Scottish officc in Motherwell and a smaLI office in Lancast¢r s¢rving as a hub for itrt¢rnal support services. R¢f¢rcncc and administrative dctails of the charity. its t￿￿t￿5 and advisers are carried on the index of the accounts, preceding this report. It is the National Ditrctor, Caroline HULL who oversecs th¢ runni￿ of the UK op¢ration and its staff, on behalf of the trustees. Trustees, & Directors. Annual Report for Ald to tha Church in Need (United Kingdom) 31 December 2022 Accounts Truste&4 are recruited to offer particular expertise to the charity. in the light of the ry¢￿$ of the organisation. The induction of new trustees includes an infonnation ov¢rYiew. a visit to the General Secretariat. an induction day at the office and the issuing of Charity cOn￿lSsion guidawe. As ytatd in a Board id¢ntily and outline docum¢nt. all trust¢es are eXp￿ted to attend the quarterly Boardme¢tings, to be available to give advice or guidanceto theNational Director and to join ad hoc conmiittees as necessary* as well as to attend chartly ¢vent8. Et should b¢ noted that payments are made in respect of the insuranc¢ of trnstees again8t liabilities in relation to the charity's affairs, but that the tn￿e8 receive no remuneratio￿ although they can be reimbur8ed for activitics required to cary out their du¢ies (travel expenses) reported under Note 6 to the ruta￿la1 Statements. The National Diwtor and senior management team present inforniation reports, discuss developments and review strategy with the Injstees at the quartcrly Board meetitigs. The number of employees and Staff C08ts are detailcd in the charity ￿cOuntS Und￿ Note 6. staffing is reportcd on at the quarterly Board meetings and remuneration is rcyicwed annually at th¢ autumn Board meeting when changes in the cost of living, perfornwice and benchmarking are all taken into conslderation. R¢muoeration for the senior manag¢￿ellt tea is addressed at th¢ same autUD]o Board meetin& within the same parameters. rnuneration for senior staff is stated witl)in Not¢ 6. The avcrage number of employees during 2022 was 37 {up from 34 in 2021). with 36.5 FTE (compared to 32.8 in 2021). In 2022 ACN (UK) welcomed I I new starters, seven who took on new roles and four who filled existing roles. The sam¢ period saw eight leavers: two due to retirement and two who held short fixed-tenn roles. leaving four staff mcmbers who left UnCxp￿tedIy. tn 2022, there were 203 ACN voluntccrs across En8lan& Scotland and Wales. The tNstce5 have reviewed their rol¢s in the light of the Charity Governance Code. they hav¢ considered and adoptd the Code as appropriate within the charity. which is part of a Pontifical FoundatioTh Th¢ trustees are all activ¢. practising Catholics and have an appropriate diV￿51tY of skills to further the Mission of th¢ Charity including finance. management, charity expertis¢. fijndraising and pastoral backgrounds. ACN (UK) acknowledges and abidcs by the Equality Act of 2010. In appointiDg Dew tnLStee8 to th¢ Board, the trnstees ensure that they have the necessary level of competence and are fidly committed to the Misston, Vision and Values of ACN (UK),. it is also important that there be nothing in their personal situation which would prevent them from fully supporting the work of the Charity. In so doing the trustees also take into account the nature of our k¢y stakeholders. the focus, in particular. must be our donors and th¢ p¢r5¢¢Uted c￿l$tianS whom we serve. Moore Kingston Smith LLP were reappoint¢d as auditors by the Board for the period under view at last yvar's Annual General Meeting. Risk Management The charity monitors risk issues on a conlinuing basis, with all tn￿te¢S involved al￿ infornied. Risk assessment continue5 to be carri¢d out and ￿llY docLmented in a regularly updated Risk Management Register. Structure5, Sy$t¢m$ ond processes are reviewed to enwre that risk is properly identified, a88essed, quantified and mitigated as as is practical and economic. In- depth di8¢ussions and r¢views are held at two Board m¢¢tings in the year and the National Dircctor di5¢US8es issues on a r¢gular basis with the de8ignated staff menlber and senior stalT. Trustees, & Directors, Annual Report for Aid to the Church In Neod (United Kingdom) 31 December 2022 Accounts The continued risk of terrorist attacks iti the UK means thai all ACN (UK) public events are previewed with a risk assessment and, whcn nccessary, licensed security fms wkll be engaged and bag searchcs carri¢d out in the halls and conferewe c¢Thtres. We will ensure that th¢ risk to those att¢nding evcnt8 including gue8t Speakers. ACN (UK) staff and helper8 - is minimi8ed. Security risks forprojecl trips are taken fully into account and a thoroughdiscussion aud review of trips takes place before project trips are undertaken. this includes s¢Gurity advice on the ground from lo￿1 partners and contscts and FCDO advice. The ACN (UK) policy and the ACN International p)licy will be followed. ACN (UK) is ajert to the probability that the integrity of its IT infrastrncture is threatened by malicious actors daily. To mitigate tbis, ACN (UK) undertakes rcgular cyb¢r Scu￿ltY risk assessm¢nt5. pcnetration t¢5ts and wlnerability SGqns. ACN (UK) keeps it5 IT infrastrurfuTe as secure as is practicable by ensuring that the fLmdamenta]s of cyber security are in place, for example, by enforcing effective patch management, by using appropriat¢ al￿ properly configured firewalls and 'best of breed, anti-malware software and controlling a￿eSS by following the Principle of Least Privilege and the use of Muiti-Factor Authentication (MFA). ACN (UK) is utuler the Fundraising Regulator. and the risks attached to breaching its Code of Fundraising Prdctice ar¢ considercd,. we have had 8 very smajl number of benefactors asking via the Fundraising Preference Service that w¢ do not contact them agaitL Th¢r¢ are detailed requirements for th¢ conduct of telephone communication8 with supporters and d¢aling with complaints, as well a separate set of rules coneerning fimdraising with people in vulnerable circumstanca8. We have inwleMent￿ comprehensive pr￿ed￿r¢S for all these matt¢rs. The Genern] Data Pro￿tion Regulation (GDPR) is followed and overseen by a Data Manager. who helps ACN (UK) review and strengthen policies wn¢¢rning all benefactor data and other data held, provides training. introduces new guidance and helps supervise our mailings and contacts nude. The Data Manager oversees all asp￿ of daia prote£tion and compliano¢.' we have a privacy policy on the web81te and maintain otber relevant policies in filll compliance with the legislation. Polici￿ for staff who deal with fimdraising andlor personal data are in plac¢. Regarding Safeguardin& ACN (UK) and ACN International hav¢ appropriate polices in plac¢. ACN deploys or employs a small number of staff or volunt¢¢rs in several countries where w¢ 5UPPOrt a large number of projects, such as in Syria aTLd Iraq. in general, we work with and through the local Church. The Catholic Bishops, Conference of each country must complywith 8afegLthrding Procedures laid down by tILe Vaticaffj and each ACN project agrccment Includes a specific clau5¢ about safeguarding which must be signed by the responsible bishop. religious superior or equivalent senior Church official. R¢porting and whistle-blowitig guidall￿ is in pla¢¢. and mandatory staff training is provided on an aDnual basis. All ourobligations und¢rboth the C￿le of FutthatsingPractice andthe Gffleral DataProtection R¢gulation are in place and implemented. Trustees. & Directors, Annual Report for Ald to the Church in Need (United Kingdom) 31 December 2022 Accounts ACN Trading Limited The results from the wh01ly-own￿ trading ¢ompany. ACN Trading Ltd are carried in thes¢ accounts and reportgj under note 8. In line witb SORP, the total turnover and full expenses of the trading subsidiary are incorporated into the Income and Expcnditure SOFA of the charity, shown under Other Trading Activities and Fundraising Trading.. Costs of Gwjs Sold. Throughout 2022 ACN Trading Ltd off¢T&I a vari¢d and carefvlly se[￿ted range of products for sale through its brochurcs alld iDserts, th¢ ACN ordine shop, social media and e- newsletters. Trdding income from events and appea15 restarte arKI s18n￿ ¢)n ¢lwbebHlf by Tlmothy aiurch NAtiotwl Pre¥ideTrl and chair￿ of the B0￿d of ThJ8ttt8 3° May 2023 **INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES AND MEMBERS OF AID TO THE CHURCH IN NEED (UNITED KINGDOM)** ## **Opinion** We have audited the financial statements of Aid to the Church in Need (United Kingdom) (the ‘parent charitable company’) and its subsidiaries (the ‘group’) for the year ended 31 December 2022 which comprise the Group Statement of Financial Activities, the Group Summary Income and Expenditure Account, the Group and Parent Charitable Company Balance Sheets, the Group Cash Flow Statement] and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice). In our opinion the financial statements: - give a true and fair view of the state of the group’s and the parent charitable company’s affairs as at 31 December 2022 and of the group’s incoming resources and application of resources, including its income and expenditure, for the year then ended; - have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and - have been prepared in accordance with the Companies Act 2006, the Charities and Trustee Investment (Scotland) Act 2005 (as amended) and regulations 6 and 8 of the Charities Accounts (Scotland) Regulations 2006 (as amended). ## **Basis for opinion** We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, 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 group’s and parent 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 contained in the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements themselves. If, based on the work we have performed, 21 **INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES AND MEMBERS OF AID TO THE CHURCH IN NEED (UNITED KINGDOM)** 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: - the information given in the trustees’ annual report for the financial year for which the financial statements are prepared is consistent with the financial statements; and - the trustees’ annual report have been prepared in accordance with applicable legal requirements. ## **Matters on which we are required to report by exception** In the light of the knowledge and understanding of the group and parent charitable company and their 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: - the parent charitable company has not kept adequate and sufficient accounting records, or returns adequate for our audit have not been received from branches not visited by us; or - the parent charitable company’s financial statements are not in agreement with the accounting records and returns; or - certain disclosures of trustees’ remuneration specified by law are not made; or - we have not received all the information and explanations we require for our audit. ## **Responsibilities of trustees** As explained more fully in the trustees’ responsibilities statement set out on page [x], 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 group and parent 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 group or parent 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. 22 **INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES AND MEMBERS OF AID TO THE CHURCH IN NEED (UNITED KINGDOM)** As part of an audit in accordance with ISAs (UK) we exercise professional judgement and maintain professional scepticism throughout the audit. We also: - Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. - Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purposes of expressing an opinion on the effectiveness of the group and parent charitable company’s internal control. - Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the trustees. - Conclude on the appropriateness of the trustees’ use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the group and parent charitable company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the group or parent charitable company to cease to continue as a going concern. - Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. - Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit report. 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. ## **Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud** 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. 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. 23 ## **INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES AND MEMBERS OF AID TO THE CHURCH IN NEED (UNITED KINGDOM)** Our approach was as follows: - We obtained an understanding of the legal and regulatory requirements applicable to the charitable company and considered that the most significant are the Companies Act 2006, the Charities and Trustee Investment (Scotland) Act 2005 (as amended), regulations 6 and 8 of the Charities Accounts (Scotland) Regulations 2006 (as amended), the Charity SORP, and UK financial reporting standards as issued by the Financial Reporting Council - We obtained an understanding of how the charitable company complies with these requirements by discussions with management and those charged with governance. - We assessed the risk of material misstatement of the financial statements, including the risk of material misstatement due to fraud and how it might occur, by holding discussions with management and those charged with governance. - We inquired of management and those charged with governance as to any known instances of non-compliance or suspected non-compliance with laws and regulations. - 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. There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion. ## **Use of our report** This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006 and to the charitable company’s trustees, as a body, in accordance with 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 charitable company's members and trustees those matters which we are required to state to them in an auditor's report addressed to them 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 company and charitable company's members as a body, and the charity’s trustees, as a body, for our audit work, for this report, or for the opinions we have formed. Neil Finlayson (Senior Statutory Auditor) for and on behalf of Moore Kingston Smith LLP, Statutory Auditor Date: 30 May 2023 9 Appold Street London EC2A 2AP Moore Kingston Smith LLP is eligible to act as auditor in terms of Section 1212 of the Companies Act 2006. 24 Aid to the Church in Need (Unlted Klngdom) Consolldated Statement of Flnancial Actlvities (incorporating the income and expenditure account) For the year ended 31 Decamber 2022 Unrestrlct•d Funds Restrlcted Funds Total 2022 Total 2021 Nole5 Incomo and Expendtturo Incomo Don8llons and Grants 5,288,775 2.786,422 8.075,197 8,026,383 Legacles r8¢elved 1,365,467 28,4(J) 1,393,887 1,006,821 Legacles recoSvable 2,326,888 2,326,888 802,131 Other trading acuvities 353.515 353.515 411,482 Total InGomg 12 9.334,645 2.814,822 12.149.467 10.246.817 Exp•ndliur• Expendllure on ra181ng funds Ralslng funds Fundralslng tradlng.. cost of goods sold 1.057,114 252,099 1,057.114 252,099 843,515 292.546 Charltable activities Grants programme Education and communication Support serylces 13 5.515.881 857.908 689,596 2,339,876 7,855.757 857,908 689.696 9,598,069 639,913 643257 Total Exwndlture 8.372.598 2.339.876 10,712,474 12.017,31KJ Not Incorno I (Expend1￿re) 962,047 474.946 1,436,993 (1,770.4831 Oth•r r•cogni8od galns1{10$sosl Nel g81￿(10$s&8) on Investments 5.801 5.801 7,$03 Net Mov•m•nt In Fund• 967,848 474,946 1.442.794 11.762.980) Fund balances bfv￿ 8t 1 January 2,900,264 139.525 3.039,789 4.802,769 Fund balances ¢fv￿ at 31 December 14 3.868,112 614,471 4,482,583 3.039.789 There were no recognlsed gains and losses other than thos& included in th& slalemenl of financlal acuvltlès. 25 Ald to th• Church In Nvd (Unltod Klngdom) Balanc• Shoot at 31 D•c•mber 2022 Group Cfvartty Noie8 2021 2022 2021 Flx•d A•g•ts T8nglNe Flx*d ￿￿ets Inv•8tments 1,028,807 36.6B8 1,050,816 30,B98 1.028.607 36.798 1,050,816 30.998 1.066.306 1,081,713 1,065,405 1,081.813 Sto¢k and work In Fwre•• Oebtor8 Caeh •t bank hand 94.008 2.458.746 1.119,2Q4 67,184 1,754,387 338,858 2,894,403 894,209 1,864,975 196,38> 3,889,958 2,160,408 3,688.612 2,081,364 ¢r•dllorn: knoLmts famng duo vAthtn on• ye 10 252,881 202,331 173.39S 133,433 N•1 Cuff•nt A89•ts 1417,278 1.958,077 3,415.217 1,947,931 N•1 kn••ts 14 4.482.583 3.039.789 4,480,622 3,029,744 Fund Unr8smc￿j D941gnated 3,783,112 85,000 614,471 2.900264 3.7B1,151 85,ODO 814,471 2,890,219 14 12 139,525 139,525 4,482.5 3.039,789 4,480,622 3,029,744 Approved pnd 4ullv)rf••d for ￿u* by th• Bowrd of Tru8te68 on 3 M•y 2023 •nd 8lgn•d on It• by Tlm¢Xhy Church. Chdrm8n ol the Board olTnJ8tse8 The noteg on pgg89 28 to 37 fom? partof t￿e aeeounts. Aid to the Church in Nood (United Kingdom) Consolidated Stat•m•nt of Cash Flows for the year endad 31 December 2022 2022 2021 Cash flow from operatlng activitles Net ¢ash provided by owaling acllvit 803,818 (3,247) Ca8h flows from Invesling actlvitles Investment Income and Interest received Proceeds from dlsposal of fixed asset investments 2,445 403 PayThents to acqui￿ tangible fixed ass8ts 25,913 37.266 780,348 (40,110) N•t Increa801d•¢rease In cash and cagh oqulvalents Openlng cash balance at th8 beginning of Ihg year Closlng ¢ash balance at Ihg of the year 780,348 338.856 (40.1101 378,966 1.119.204 338,858 Ro¢onclllatlon of not Income to n•t cash flow from opgratlng aGtlvltles 2,022 2021 Not Movem¢nt In Funds Adjustments for: 1,442.793 {1,762,980) Depreciallon Nel {gains)11095es on Investments Investment Income Decrease I (In￿eaSe) in stock {Increaseydecrease In debtors Increasel (de¢￿aSe) in ¢￿ditI)r5 48.122 (5.801) (2.445) (26,843) (702,357) 50.349 45,183 (7.503) (403) 5,313 1,713,521 3,822 803,818 (3,247) 27 Aid to the Church In Need (Unltod Kingdom) Notes to the Accounts For the year ended 31 December 2022. 1 Ac¢ountlng PollGIo8 Basis of prgparatlon These financlal slalemants have been prepared under the hlslorfcal cost conventlon and In accordanc8 with tho Financlal Rgpgrting Standard Bpp4lcable In the UK and Republlc of Ireland IFRS 102). The Ch8rlty and ils subsidiary ar8 a public bengfit group for the purpos98 of FRS 102 and therefore have also preparad the financlal statements In a￿ordanCe wtth the Stslemenl of Recommended Practice appIl￿b￿ lo charftbs preparing their accounts in accordance with ihg Financial Reportlng Slandgrd 8ppll¢abte In th& UK and Republic of Ireland (Th9 FRS 102 Charlttes SORPI and Ihe Companies Acl 2006. Golng concern The tnJstees have Conslderod kx*ssible events or ¢￿ditionS that mlghl cast signlflcant doubt on the ablllty of th¢ charftsble company lo continue as a going concern. Thg trustees have mado Ihelr assessment for a perfod of at18ast one year from th8 dale of th8 approval of these flnanc181 stslemenls. In partlcular. tha trustees havo consK18red the charftable company's for8casls and project1c￿8 and have consld8red tho polentlal Impa¢l of the current econom￿ clifflale on the vlablllty of the charltabla group. After maklng enouiries, tha trustees have conduded that there Is a 1gasonab18 expeclatlon that tho charftable oompany has adequate resources to continue in Opera￿e￿al exist8nce for the foreseeable tulure. Th8 charitsbla ￿MpanY therefore conlSnu8S to adopt thg going Co￿8M basls In preparing its finandal statements. Bas13 of consolldatlon Tho group flnandal statements consolldale the financial statement5 of ACN Tr8ding Llmllgd. No Statement of Flnandal Acllvltyls prepared for the charty as permittad by sectlon 408 of the Compan188 Act 2006. Company status The charfly Is r￿Stered with th9 Charlty Commlsslon in England and Wales number 1097984. The charity Is r￿1Sterd wllh the Office of the Scothsh Charity Regulator nUrn￿r SC0400748. The Charty Is registared wllh Companlas House In England and Wales number 4747e66. Thg rgglstsrthj offlce15 8gnhlll House, 12-14 B8njhill Avenue. Sutton. Surrey. SM14DA. England. Thè charity Is a cc4mpany Ilmiled by guarantee. The members of the company ar& the Iruslee8 named on pago 1. In the event ol the Charity being wound up. the Ilablllty In respect of the guarantae Is limited to £10 per member of the charity. In¢omlng rnsource8 All Incom8 Is r9¢0gn18*J whon Iherels enlltlamenl to Ihg fvnds, the r8¢dpt is prcthble and the amount can be measur8d rellabty. Legacles are recognised followlng prcb8te onco evidènce is re￿rVad Ihal the receipt is probable and th& am￿nI of the legacy receivabla can ba mgasured rellably. D8talls of any legacies to whlch the charity is entitlèd. for which the amount receivable or timing of recdpl 18 uncthaSn 8re dlsclo88d 88 8 conlingenl assat until crflgrla for I￿orne reco3nlllon are mgt. Th8 charfly has been notmled of legacl6s asilmate4J to prDJuc8 t575,00012021'. £500,000) whlch have not been includgd Sn the ccmsolidaled Statement of Flnanclal Act5vrtles, b8cause thg cond￿lon$ for r&cognlllon have not been mel. Fund accountlng Restricted funds are those arg lo be used for the spectfigd purposes laSd down by the donor. Expenditure whlch meets these criteria is allocated to th8 approprfate fund. Unreslricled funds arg donatlons and other Income recefved or genoraled for the furthor8nc8 of thè obSgCts of thg charlty without 8peciffl&J purposes, and Iherefore are avalloble as general funds. 28 Aid to the Church In N8ed (Unlted Klngdom) Notes to the Accounts For the year ended 31 December 2022 {eontinued) 1 Accountlng Pollcl•s (contInU￿) G0￿Mment grant pollcy Incorne from government orothgrgrants 1$ fowyn188d vthen th& chArty ha8 ￿lttlema￿t to the fvnd8. any parformance ¢ondthorts attathed to th8 grarTrl have b?en met, It Is probable the In￿Me 11 bo rgcehe(J and the aMo￿t ean be reliabty measured. Le$gor a¢￿intr￿j Rgnlal Inr4)me from operatirvJ1g￿9S k racojn1$￿ on a 8lralght Ilne b8Bls ovèrthe tsrni of the relevant le888. Inilal dlrect costs in¢L￿d in negotla(IrYJ and arrsryJing an operaung lease aro addad to th? canyng amount of the lea58d asset and reeagnised on a 8tralght line basis ov8rtha lease l&mi. Flx•d As$ets and Deproclatlon All flxed #ssets are used in direct furtherance of Ihg charlty's F￿￿d assets are Ir￿lUd￿ In Ihe89 flnandal 5tat8ments at ihdrorigln81 cost lesg deprnciatbjn and accum￿ater1 irnpairment10889$ Pro￿￿ed lo date. Depreclatbn Is pro￿deCI on all tarolble flxed 8$50ts, at ratss c81culate(I lo writo off the c08ts les s￿rnated residual value gf eath asset, by equ81 annual Instslments. overthgir expected useful I￿e$ which are 0)n5￿er8d to b8.. Fr8ehokY propety Office fithr88 ￿ eq￿prnent Computsr wwlpmènt 1% stralght line 25% 8traSght Ilne 330kn $tralght lino The gain or10&8 arlslng on th• dl$po$al of an asset SB dglgrrnlned a8 the dtrfer8r￿e b6h¥aen Ihe salè pro¢eed8 8TrJ Ihe earrwng value of tha 4ss8t oTrJ Is reCog￿sed In the profit 8nd10ss 8CCOWt. Grant-maklng pollcle The trustees alloc818 grants In accordance wth the obJ8cts set out In I Mèmorarnlum and Aitid85 01 Asyoclalon of the th8rftable company. whSch 8re 8urnmari8ed In tho Tntsteè¥' Annual ReporL Ro$ourco8 oxp•nd8d Staff L￿SIS arky overh&ad 8xpenw8 are alb¢abJ to athllès Dn the ba51s of lrne spent on th)88 aCti￿tIes. Resourc88 axpeThJed are inclLkI8d in Ihe Ststemgnt of Acuwties on an aLrrua15 ba518. Any acwgj h￿klaY p&y 0[￿ement￿￿ukj bg Induded In thè Stalmnlof Actmiw. Crltl¢al accountlng •stlmatss and arna$ offvdgament In pr8parln9 accounts. it is necessary lo make ￿rtain ludgements. 8¥dm8198 aTrJ assumpth)ns t￿t 8ffecttho amounts recogntsed In the 8c