## **GRACE & LIGHT UK**
UNAUDITED REPORT AND FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2021 CHARITY NUMBER: 1115859
COMPANY NUMBER: 5862183
i
## **LEGAL AND ADMINISTRATIVE INFORMATION 31 DECEMBER 2021**
**TRUSTEES AND DIRECTORS:** E J Greening P D S King M T E Hopkins F Ogunyide J Sweeney B Adetutu K Rotowa **SECRETARY:** P D S King **REGISTERED OFFICE:** 8 Kingswood Drive London SE19 1UR **REGISTERED COMPANY NUMBER:** 5682183 (England and Wales) **REGISTERED CHARITY NUMBER** 1115859 **INDEPENDENT EXAMINER:** Michael Marshall 2 Meldon Gardens Choppington Northumberland NE62 5EW
**BANKERS:**
Lloyds plc 64 Fore Street Trowbridge BA14 8EU
ii
## **REPORT OF THE TRUSTEES**
The trustees, who are also directors of the charity for the purposes of the Companies Act 2006, present their report and financial statements for the year ended 31 December 2021. Legal and administrative information set out on page one forms part of this report. The trustees have adopted the provisions of 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 (FRS102) (effective 1 January 2015).
## _**Structure, governance and management**_
The charity is a company limited by guarantee without a share capital. The limit of the members’ liability under the terms of the company’s Memorandum and Articles is £1.00 each. The charity was established in 2006 as the UK branch of Grace & Light International Ministry, a Christian HIV/Aids charity based in Jos, Nigeria.
New trustees are normally appointed by the members of the charity at a general meeting, or by the existing trustees at other times. In this latter case the trustee must retire at the next annual general meeting, but can be reappointed. One third of all directors retire at each AGM by rotation, but can be re-elected. The Memorandum and Articles provide for a minimum of three trustees, with no maximum number.
Trustees meet at least quarterly to agree the broad strategy and areas of activity for the charity. The charity has no employees so the trustees share the responsibilities of fundraising and day-to-day administration. All trustees give of their time freely and no trustee received remuneration or expenses during the year. There are currently no formal induction or training programmes for directors.
## _**Risk assessment and management**_
The trustees have considered the major risks to which the charity is exposed and seek to manage them on an ongoing basis.
Our major operational risk is our dependence on a small team of volunteers for our work in raising funds and for future ministry in the UK.
Financially, the charity relies mainly on private donations and much of our income is given by standing order. The ability of the wider Grace & Light movement to carry on its work is directly dependent on these donors’ continued giving and the raising of additional funds.
Political events in Africa can affect the charity’s working in that continent. The availability of international funding for anti-retroviral drugs greatly impacts the quality of care for HIV-positive members. In the UK changes in government policy may affect our plans for voluntary counselling and testing through UK churches.
## _**Related Parties and Others in Cooperative Activities**_
Grace & Light acts in close partnership with a number of other Christian charities from the UK in fulfilling the aims and objectives set out in the Memorandum and Articles of Association.
## _**Objectives and activities for the public benefit**_
Grace & Light takes a unique church-centred approach to the HIV pandemic, integrating prevention, care and support and attitude change activities.
iii
We believe that the HIV/AIDS pandemic is more than a medical emergency, it is also a spiritual and moral crisis. Indeed, the spiritual and moral issues go deeper than the medical ones in both developed and developing nations.
Thus we have constructed a response that tackles all three areas. In Grace & Light medical personnel and theologians work together to transforms lives through our three principles grace, openness and love.
We work through local churches of any denomination. They are rooted in their communities and retain respect, a potent combination in the fight against HIV & AIDS.
The process begins with the minister and leaders. We only go into churches with their active support. Then we address the entire congregation during a service, giving basic information on the disease and preaching the gospel and challenging people.
That challenge begins with HIV testing on the church premises for all who are interested. Two options are offered: standard confidential testing or openness – sharing your results with other people in the church who have also chosen to be open.
All who choose the second option make three commitments, to:
- Belong to Christ in the gospel
- Be open about their HIV status, whether positive or negative
- Meet together regularly in small groups to support and encourage each other.
Though we began in Nigeria, in response to the particular cultural issues there, we aim to apply this approach wherever the pandemic and Christian churches coexist.
## _**Review of activities**_
## **Achievements**
Grace & Light has continued to challenge the church to apply the whole Gospel, challenging cultural norms, living out a life of righteousness in a society mired by corruption. Here are some highlights from the last 12 months.
## **Christian politicians were challenged to put God before ambition.**
International coordinator Tassie Ghata was given the opportunity to explain God’s expectations of political leaders before 500 people during a rally in preparation for Nigerian elections next year.
During her 60-minute speech Tassie introduced the concept of the politics of righteousness, saying, “This is getting involved in government, leadership or influencing societal decisions in a way and manner that brings glory to God and impacts the people positively.
“With this definition, it is possible to have politics of righteousness in Nigeria at every level, because there are people who love God and are ready to obey Him no matter what.”
She highlighted the issue she believes causes Christians and churches to distance themselves from politics: Christian politicians who become drunk with power and shipwreck their faith.
“They fail to live according to God’s commands and also don’t take a stand for the truth, perhaps because they are afraid of losing their position or want to please the crowd.”
iv
## **More than 5,000 Christians congregated at roundabouts across Jos to repent and ask God’s forgiveness and healing on the land.**
Imagine 5,000 people at 16 roundabouts on the major thoroughfares across the city; that is an average 300 people per roundabout. All sitting in the dirt in the hot sun and dressed in black with heads bowed crying out to God.
These people have come from many of the congregations in Jos, including a sprinkling of Muslims who saw what was happening and joined their Christian neighbours in solidarity for the peace of their city.
## **Christian couples are better at talking with each other about problems in their homes following a couples workshop for their congregation.**
Twenty-six couples from an ECWA church in Miango participated in Grace & Light’s sexual and gender-based violence workshop in April.
During the day-long workshop they discussed what women and men both being created in God’s image means for them, and how God expects them to treat each other.
They also heard about the differences between positive and negative parenting and how both impact their children’s self-esteem and behaviours.
International coordinator Tassie Ghata, who led the workshop, said “the workshop highlighted for them the benefits of talking openly about sexual issues. When they don’t do so it leads to frustration, quarrels and other problems in their homes.
“They said their then take these problems to their parents and siblings because they don’t know how to talk about them with their spouses.
“Many were surprised that husbands can rape their wives. We discussed this in same sex groups, expecting to take 15 minutes, and ended up taking an hour to talk through all their questions.”
## **Sexual and gender-based violence is an ongoing focus.**
Grace & Light’s Jos volunteer team spoke at three different Girls Brigade camps, each with 1,000 girls, giving an interactive presentation followed by counselling for anyone who was being sexually abused.
“We talked about how to recognise sexual and gender-based violence and the tricks men use to take advantage of girls when they are vulnerable,” said international coordinator Tassie Ghata.
“We also shared lots of ideas about how to conduct their lives so men see them as strong and confident, rather than as easy targets who can be manipulated.”
Many girls came forward for counselling at each of the three camps, sharing their experiences of incest with uncles, brothers, neighbours and family friends.
Many also repented of their own behaviour that encouraged the men such as going out with older men for the gifts they would receive.
Others felt trapped. One girl, who was having sex with her uncle, didn’t know how to stop this without upsetting her mother. The mother was aware of what was happening but didn’t want the uncle to be reported to the police, or stigma damaging the family name.
## **Schools ministry**
v
Schools ministry has been interrupted by Covid, but our teams have been able to get back into schools in Jos, Yola and Jalingo. HIV testing and counselling for sexually abused teenagers are two important areas of our ministry.
Training was also given to teachers. Forty-four teachers from 11 private and state secondary schools spent a day in March this year discussing responses to corruption and poverty in education. They shared issues they and their students face including bullying, intimidation, sexual exploitation, cheating, lying and stealing, with Grace & Light programme officer Pofi Josiah.
## **Training**
New volunteer training took place in 2021 and a new team was formed in Gembu, Taraba State. Refresher training is also a vital part of our ministry, and 76 volunteers took part in a three-day workshop to encourage them to continue to take our message of social righteousness out to churches and schools.
## **Building project**
The training centre now has a roof and the next stage is rendering the walls. There is still a long way to go to do all the internal finishing. God has been faithful, so we look forward to seeing the funds come in to finish the project.
## **Financial review**
Our long-term partners, OM and AMEN continued to support our ministry with grants for ongoing expenses. For the building project we are grateful for the support of Golden Stable Trust, David Hopkins and Property Pastors.
In 2021 individual donors gave £38,640, churches £1,000 and £24,148 came via trusts. Our fundraising walk in 2021 raised just under £5,000 for training, and in June 2022 we raised almost £1,000.
Our expenses are not covered by regular giving, but we still managed to break even in unrestricted income and expenditure during 2021. It has been encouraging to note the steady increase in local support for our work in Nigeria, as well as the contribution from sales at the charity shop at our Jos HQ.
## _**Reserves policy**_
The charity normally pays its expenses in cash and has no long-term liabilities. In 2021 a Special Reserve Fund was set up following a legacy donation.
## _**Statement of trustees’ responsibilities**_
Company law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the company and of the surplus or deficit of the company for that period. In preparing those financial statements, the trustees are required to:-
- (a) Select suitable accounting policies and then apply them consistently;
- (b) Make judgement and estimates that are reasonable and prudent;
- (c) Prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the company and to enable them to ensure that the financial statements comply with the Companies Act 2006 and the Accounting and Reporting by Charities Statement of Recommended
vi
Practice. 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.
Approved by the trustees and signed on its behalf by:
……………………………………………………
Edmund Greening (Chairman)
20 August 2022
vi i
## **ACCOUNTANT’S REPORT TO THE TRUSTEES ON THE UNAUDITED ACCOUNTS**
## **OF GRACE & LIGHT (UK)**
I report on the accounts for the year ended 31 December 2021 set out on pages vii to xii.
Respective responsibilities of directors and reporting accountant
The trustees (who are also the directors of the company for the purposes of company law) are responsible for the preparation of the accounts. The trustees consider that an audit is not required for this year (under Section 144(2) of the Charities Act 2011) and that an independent examination is required. The statements have been prepared in compliance with the Charities Act 2011, the Companies Act 2006, and FRS 102 (2016) as the applicable accounting standards and the 2016 version of Statement of Recommended Practice: Accounting and Reporting by Charities (FRS 102).
Having satisfied myself that the charity is not subject to audit under company law and is eligible for independent examination, it is my responsibility to:
- examine the accounts under section 145 of the 2011 Act;
- to follow the procedures laid down in the general Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act; and
- to state whether particular matters have come to my attention.
## **Basis of independent examiner’s report**
My examination was carried out in accordance with the general directions given by the Charity Commission. An examination includes a review of the accounting records kept by the charity and a comparison of the accounts presented with those records. It also includes consideration of any unusual items or disclosures in the accounts, and seeking explanations from you as trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit and consequently no opinion is given as to whether the accounts present a ‘true and fair view’ and the report is limited to those matters set out in the statement below.
## _Independent examiner’s statement_
In connection with my examination, no matter has come to my attention:
- (1) which gives me reasonable cause to believe that, in any material respect, the requirements
- to keep accounting records in accordance with Section 386 and 387 of the Companies Act 2006; and
- to prepare accounts which accord with the accounting records, comply with the accounting requirements of Sections 394 and 395 of the Companies Act 2006 and with the methods and principles of the Statement of Recommended Practice: Accounting and Reporting by Charities
## have not been met; or
- (2) to which, in my opinion, attention should be drawn in order to enable a proper understanding of the accounts to be reached.
vi ii
Michael Marshall
## **Statement of Financial Activities for the year ended 31 December 2021**
||||**2021**|**2020**|
|---|---|---|---|---|
||**Unrestrict**
**ed**|**Restrict**
**ed**|**Total**
**funds**|**Total**
**funds**|
|**Note**
**s**|**£**|**£**|**£**|**£**|
|**Income and endowments from**|||||
|Donations and legacies|34,261|29,480|63,741|38,411|
|Giftaid reclaimed|2,567|-|2,567|2,935|
|Investment income
2|1|-|1|3|
|**Total Incoming Resources**|36,829|29,480|66,309|41,349|
||||||
|**Expenditure on**|||||
|**_Raising funds_**|||-|-|
|**_Charitable activities_**|||||
|Provision of fnancial support for Grace &
Light International|29,827|31,850|61,677|61,045|
||||||
|**Total**|29,827|31,850|61,677|61,045|
||||||
|Net (outgoing)/incoming resources before
transfers|7,002|(2,370)|4,632|(19,696)|
||||||
|Transfers between funds|-|-|-|-|
||||||
|**Net income/(expenditure) for the**
**year**|7,002|(2,370)|4,632|(19,696)|
||||||
|**Total funds brought forward**|1,032|6,318|7,350|27,046|
||||||
|**Total funds carried forward**|8,034|3,948|11,982|7,350|
The statement of financial activities includes all gains and losses recognised in the year.
All incoming resources and resources expended derive from continuing activities.
The notes on pages x and xi form part of these accounts.
x
## **Balance Sheet as at 31 December 2021**
||**2021**|**2020**|
|---|---|---|
||**£**|**£**|
|**Current assets**|||
|Cash at bank and in hand|11,982|7,350|
|Accrued income|-|-|
||||
|**Creditors:**Amounts falling due within one year|||
|Accrued expenses|-|-|
|**Net current assets**|11,982|7,350|
||||
|**Funds**|||
|Unrestricted funds|8,034|1,032|
|Restricted funds|3,948|6,318|
|**Total charity funds**|11,982|7,350|
The company is entitled to exemption from audit under Section 477(2) of the Companies Act 2006 for the year ended 31 December 2021. The statements have been prepared in compliance with the Charities Act 2011, the Companies Act 2006, and FRS 102 (2016) as the applicable accounting standards and the 2016 version of Statement of Recommended Practice: Accounting and Reporting by Charities (FRS 102).
The trustees acknowledge their responsibility for:
- (a) ensuring the company keeps accounting records which comply with Section 386 of the Companies Act 2006 and;
- (b)preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of each financial year and of its surplus or deficit for each financial year in accordance with the requirements of Section 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 charitable company.
Approved on behalf of the trustees:
………………………………………………..
Peter King – Trustee
The notes on pages x and xi form part of these accounts.
xi
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021
**1. Accounting policies** The principal accounting policies adopted, judgements and key sources of estimation uncertainty in the preparation of the financial statements are as follows:
- (a) Basis of Accounting
The financial statements have been prepared under the historic cost convention and in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2015) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006. Additional disclosures have been provided at the discretion of the directors. The company is a public benefit entity within the meaning of FRS 102.
- (b) Going concern
The company is dependent upon voluntary donations and upon volunteer time. The balance sheet remains strong with net assets of nearly £12,000 **.** The directors consider that the company is a going concern.
- (c) Voluntary income is received by way of donations and is included in the Statement of Financial Activities when received.
- (d) Resources expended are recognised in the period in which they are incurred. Resources expended include
attributable VAT which cannot be recovered.
- i. Costs of generating funds comprise the costs associated with attracting voluntary income and the costs
of trading for fundraising purposes.
- ii. Charitable expenditure comprises those costs incurred directly by the charity in the delivery of its activities and service for its beneficiaries. It includes both costs that can be allocated directly to such
activities and those of an indirect nature necessary to support them.
iii. Governance costs include those costs associated with meeting the constitutional and statutory
requirements of the charity and include audit fees and costs linked to the strategic management of the
charity.
- iv. All costs are allocated between the expenditure categories of the SOFA on a basis designed to reflect
- the use of the resource. Costs relating to a particular activity are allocated directly; others are
apportioned on an appropriate basis.
- (e) Unrestricted funds are donations and other incoming resources receivable or generated for the objects of the charity without further specified purpose and available as general funds.
- (f) The charity’s restricted funds are those where the donor has imposed restrictions on the use of funds.
- (g) The company is registered as a charity and therefore its activities are exempt from Corporation Tax. Accordingly no provision for taxation is made in theses financial statements.
- (h) The company is limited by guarantee and does not have any share capital.
- (i) Transactions in foreign currencies are recorded at the rate of exchange ruling at the balance sheet date or at the
date of transaction where this is known.
## **2. Investment income**
**2021 2020**
xi i
||**£**|**£**|
|---|---|---|
|**Investment income**|||
|Deposit account interest|1|3|
## **3. Trustees’ remuneration and benefits**
There were no trustees’ remuneration or benefits for the year ended 31 December 2021, nor for the year ended 31 December 2020.
## **4. Analysis of net assets between funds**
|||**Unrestrict**
**ed funds**|**Restrict**
**ed**
**funds**||**2021**
**Total**
**funds**|**2020**
**Total**
**funds**|
|---|---|---|---|---|---|---|
|||**£**|**£**||**£**|**£**|
|**Current assets**||8,034|3,948||11,982|7,350|
|**5.**
**Movement in funds**
**At 1**
**January**
**2021**
**Net**
**movement in**
**funds**
**£**
**£**
**Unrestricted funds**
General reserve
1,032
4,251
Designated reserve
2,751
**Total unrestricted funds**
1,032
7,002
**Restricted funds:**
Borno
1,256
-
Minibuses
1,045
-
Buidling project (retreat centre)
88
450
Testing
2,778
(2,000)
Tassie's ministry
151
(102)
Training
1,000
(718)
**Total restricted funds**
6,318
(2,370)
**Total funds**
7,350
4,632
Net movement in funds, included in the above are as follows:
**Incoming**
**resources**
**Resources**
**expended**
**£**
**£**
**Unrestricted funds**
General reserve
33,078
28,827
Designated reserve
3,751
1,000
**Total unrestricted funds**
36,829
29,827
**Restricted funds:**
Borno
-
-
Minibuses
-
-
Buidling project (retreat centre)
24,450
24,000
Testing
-
2,000
xi
ii||||**At 31**
**December**
**2021**
**£**
5,283
2,751
8,034
1,256
1,045
538
778
49
282
3,948)
11,982
**Movemen**
**t in funds**
**£**
4,251
2,751
7,002
-
-
450
(2,000)|||
|Tassie's ministry
Training
**Total restricted funds**
**Total funds**|48
4,982
29,480
66,309|150
5,700
31,850
61,677|(102)
(718)|
|---|---|---|---|
||||(2,370)
4,632|
**Building project:** Funds received to build a retreat centre at Grace & Light’s headquarters in Nigeria.
**Borno ministry:** Funds received to be used for ministry in Borno State. **Minibuses:** Funds received to purchase minibuses to transport staff and volunteers. **Training:** Funds received for training expenses.
**Testing:** Funds received for HIV testing expenses.
**Tassie’s ministry:** Funds to be used at the discretion of the International Coordinator.
xi v
## **Detailed Statement of Financial Activities For the year ended 31 December 2021**
||**For the year ended 31 December 2021**|||
|---|---|---|---|
|||**2021**|**2020**|
|||**£**|**£**|
|**INCOMING RESOURCES**||||
|||||
|**Voluntary income**||||
|Donations||63,741|38,411|
|Giftaid reclaimed||2,567|2,935|
|||||
|**Investment income**||||
|Deposit account interest||1|3|
|||||
|**Total incoming resources**||66,309|41,349|
|||||
|**RESOURCES EXPENDED**||||
|||||
|**Costs of generating voluntary income**||||
|Mail shots & fundraising||-|-|
|||||
|**Charitable Activities**||||
|Grants paid for Nigeria ministry||61,560|60,600|
|||||
|**Support costs**||||
|**Management**||||
|Travel||-|445|
|Bank charges||117|-|
|||117|445|
|||||
|**Total resources expended**||61,677|61,045|
|||||
|**Net income/(expenditure)**||4,632|(19,696)|
x v