ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020
The Prayer Foundation
(A company limited by guarantee) Charity registration number: 1123018 Company registration number: 06269030
Independent Examiners Ltd 2 Broadbridge Business Centre Delling Lane Bosham Chichester West Sussex PO18 8NF
THE PRAYER FOUNDATION
CONTENTS
| Legal and Administrative Information | 1 |
|---|---|
| Trustees' Report | 2 to 4 |
| Independent Examiner's Report | 5 |
| Statement of Financial Activities | 6 |
| Balance Sheet | 7 |
| Notes to the Financial Statements | 8 to 17 |
THE PRAYER FOUNDATION
LEGAL AND ADMINISTRATIVE INFORMATION
Charity Registration 1123018 Number Company Registration 06269030 Number Trustees Lady Susan Sainsbury Rev Douglas Williams Mrs Agnes Sullivan Mrs Lois Gott (resigned 7 January 2020) Mr Andrew Chua Rev Rod Anderson Rev Julie Anderson Mr Jamie Anderson Registered address 6 Calais Street London SE5 9LP Independent Examiner Independent Examiners Ltd 2 Broadbridge Business Centre Delling Lane Bosham Chichester West Sussex PO18 8NF
Page 1
THE PRAYER FOUNDATION
TRUSTEES' REPORT
The Trustees, who are directors for the purposes of company law, present the annual report together with the financial statements of the charitable company for the year ended 31 December 2020.
Objectives and activities
Objects and aims
The object of the charitable company is the advancement of the Christian faith by such charitable means as the Trustees in their absolute discretion shall think fit. The principal activity is prayer and teaching people to pray more effectively.
Public benefit
The Trustees confirm that they have complied with the requirements of section 17 of the Charities Act 2011 to have due regard to the public benefit guidance published by the Charity Commission for England and Wales.
Achievements and performance
The charity partnered with other charities as it has in recent years with the following initiatives:
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Deborah Company UK Online Prayer Courts
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Prayer for Parliament and the Nations
-
CHOSEN gatherings
The Prayer Foundation has continued to build on strong links through Rod and Julie Anderson with two other charities: Prayer for the Nations (326994) and Commonwealth Christian Fellowship (8011342).
The Trustees anticipate the work of the charity to continue despite the adverse effects of Coronavirus.
Financial review
Policy on reserves
The Trustees have determined that, in line with their belief that God provides for the work to which He calls His people, no reserves should be maintained for the work of the charity.
Going concern
After making appropriate enquiries, the Trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. For this reason they continue to adopt the going concern basis in preparing the financial statements.
Page 2
THE PRAYER FOUNDATION
TRUSTEES' REPORT
Structure, governance and management
Nature of governing document
The Prayer Foundation is registered as a charitable company limited by guarantee and was set up by a Memorandum of Association.
Recruitment and appointment of Trustees
New Trustees are elected by the Board periodically. New trustees are provided with historical charity documentation and referred to the Charity Commission website for guidance and publications on becoming a trustee.
Organisational structure
Day to day management and planning of the Charitable Company are delegated to two Chief Executives, Rod & Julie Anderson and their team. The Trustees are responsible for the general strategic direction, governance and financial viability and control. They monitor the activities of the Trust through regular reports, management accounts and approval of major items of expenditure. The Trustees meet around 3 times per year, or more frequently if necessary.
Risk management
The Trustees have assessed the major risks to which the charity is exposed, in particular those related to the operations and finances of the charity, and are satisfied that systems and procedures are in place to mitigate our exposure to the major risks.
Page 3
THE PRAYER FOUNDATION
TRUSTEES' REPORT
Statement of Trustees' Responsibilities
The Trustees (who are also the directors of The Prayer Foundation for the purposes of company law) are responsible for preparing the Trustees' report and the financial statements in accordance with the United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) and applicable law and regulations.
Company law requires the Trustees to prepare financial statements for each financial year. Under company law the Trustees 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 charitable company and of its incoming resources and application of resources, including its income and expenditure, for that period. In preparing these financial statements, the Trustees are required to:
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select suitable accounting policies and apply them consistently;
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observe the methods and principles in the Charities SORP;
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make judgements and estimates that are reasonable and prudent;
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state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
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prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business.
The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charitable company's transactions and disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The annual report was approved by the Trustees of the charity on 2 September 2021 and signed on its behalf by:
......................................... Lady Susan Sainsbury Trustee
Page 4
THE PRAYER FOUNDATION
INDEPENDENT EXAMINER'S REPORT
I report to the charity Trustees on my examination of the accounts of the charity for the year ended 31 December 2020 which are set out on pages 6 to 17.
Respective responsibilities of Trustees and examiner
As the charity’s Trustees of The Prayer Foundation (and also its directors for the purposes of company law) you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 (‘the 2006 Act’).
Having satisfied myself that the accounts of The Prayer Foundation 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 your charity’s accounts as carried out under section 145 of the Charities Act 2011 (‘the 2011 Act’). In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.
Independent examiner’s statement
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:
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accounting records were not kept in respect of The Prayer Foundation as required by section 386 of the 2006 Act; or
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the accounts do not accord with those records; or
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the accounts do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a ‘true and fair view' which is not a matter considered as part of an independent examination; or
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the accounts have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities [applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)].
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 accounts to be reached.
...................................... G W Schulz ACMA Independent Examiners Ltd 2 Broadbridge Business Centre Delling Lane Bosham Chichester West Sussex PO18 8NF
2 September 2021
Page 5
THE PRAYER FOUNDATION
STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2020
| Note Unrestricted funds £ Income and Endowments from: Donations and legacies 3 125,393 Other trading activities 4 369 Investment income 5 6 Total income 125,768 Expenditure on: Raising funds 202 Charitable activities 6 92,242 Total expenditure 92,444 Net income 33,324 Net movement in funds 33,324 Reconciliation of funds Total funds brought forward 95,083 Total funds carried forward 14 128,407 |
Restricted funds £ - - - - - - - - - 15,687 15,687 |
Total 2020 £ 125,393 369 6 125,768 202 92,242 92,444 33,324 33,324 110,770 144,094 |
Total 2019 £ 160,775 1,987 9 |
|---|---|---|---|
| 162,771 | |||
| 1,687 124,853 |
|||
| 126,540 | |||
| 36,231 | |||
| 36,231 74,539 |
|||
| 110,770 |
The notes on pages 8 to 17 form an integral part of these financial statements. Page 6
THE PRAYER FOUNDATION
REGISTERED NUMBER: 06269030
BALANCE SHEET AS AT 31 DECEMBER 2020
| Note Fixed assets Tangible assets 10 Current assets Stocks 11 Debtors 12 Cash at bank and in hand Creditors: Amounts falling due within one year 13 Net current assets Net assets Funds of the charity: Restricted income funds Restricted funds Unrestricted income funds Unrestricted funds Total funds 14 |
2020 £ 1,128 5,600 273,085 19,645 298,330 (155,364) 142,966 144,094 15,687 128,407 144,094 |
2019 £ 1,474 5,600 246,852 15,882 |
|---|---|---|
| 268,334 (159,038) |
||
| 109,296 | ||
| 110,770 | ||
| 15,687 95,083 |
||
| 110,770 |
For the financial year ending 31 December 2020 the charity was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
Directors' responsibilities:
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The members have not required the charity to obtain an audit of its accounts for the year in question in accordance with section 476; and
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The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.
These accounts have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements on pages 6 to 17 were approved by the Trustees, and authorised for issue on 2 September 2021 and signed on their behalf by:
......................................... Lady Susan Sainsbury Trustee
The notes on pages 8 to 17 form an integral part of these financial statements. Page 7
THE PRAYER FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS FOR YEAR ENDED 31 DECEMBER 2020
1 Charity status
The charity is limited by guarantee, incorporated in England, and consequently does not have share capital. Each of the Trustees is liable to contribute an amount not exceeding £1 towards the assets of the charity in the event of liquidation.
2 Accounting policies
Summary of significant accounting policies and key accounting estimates
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
Statement of compliance
The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102). They also comply with the Companies Act 2006 and Charities Act 2011.
Basis of preparation
The Prayer Foundation meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy notes.
Going concern
The Trustees consider that there are no material uncertainties about the charity's ability to continue as a going concern nor any significant areas of uncertainty that affect the carrying value of assets held by the charity.
Income and endowments
All income is recognised once the charity has entitlement to the income, it is probable that the income will be received and the amount of the income receivable can be measured reliably.
Page 8
THE PRAYER FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS FOR YEAR ENDED 31 DECEMBER 2020
Donations and legacies
Donations are recognised when the charity has been notified in writing of both the amount and settlement date. In the event that a donation is subject to conditions that require a level of performance by the charity before the charity is entitled to the funds, the income is deferred and not recognised until either those conditions are fully met, or the fulfilment of those conditions is wholly within the control of the charity and it is probable that these conditions will be fulfilled in the reporting period.
Gift aid
Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.
Expenditure
All expenditure is recognised once there is a legal or constructive obligation to that expenditure, it is probable settlement is required and the amount can be measured reliably. All costs are allocated to the applicable expenditure heading that aggregate similar costs to that category.
Raising funds
These are costs incurred in attracting voluntary income, the management of investments and those incurred in trading activities that raise funds.
Charitable activities
Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them.
Grant provisions
Provisions for grants are made when the intention to make a grant has been communicated to the recipient but there is uncertainty about either the timing of the grant or the amount of grant payable.
Taxation
The charity is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the charity is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.
Tangible fixed assets
Individual fixed assets costing £500 or more are initially recorded at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
Page 9
THE PRAYER FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS FOR YEAR ENDED 31 DECEMBER 2020
Depreciation and amortisation
Depreciation is provided on tangible fixed assets so as to write off the cost or valuation, less any estimated residual value, over their expected useful economic life as follows:
Asset class Depreciation method and rate Short-term leasehold property 20% straight line Fixtures and fittings 20% reducing balance Computer equipment 33% straight line Plant and machinery 25% reducing balance
Stock
Stock is valued at the lower of cost and estimated selling price less costs to complete and sell, after due regard for obsolete and slow moving stocks. Cost is determined using the first-in, first-out (FIFO).
Debtors
Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.
Liabilities
Liabilities are recognised when there is an obligation at the Balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably.
Liabilities are recognised at the amount that the company anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide.
Fund structure
Unrestricted income funds are general funds that are available for use at the Trustees's discretion in furtherance of the objectives of the charity.
Restricted income funds are those donated for use in a particular area or for specific purposes, the use of which is restricted to that area or purpose.
Page 10
THE PRAYER FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS FOR YEAR ENDED 31 DECEMBER 2020
Financial instruments
The company only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.
3 Income from donations and legacies
| Donations and legacies; Donations Gift aid reclaimed |
Unrestricted funds General £ 123,618 1,775 125,393 |
Total 2020 £ 123,618 1,775 125,393 |
Total 2019 £ 157,871 2,904 |
|---|---|---|---|
| 160,775 |
4 Income from other trading activities
| Trading income; Sales of resources 5 Investment income Interest receivable and similar income; Interest receivable on bank deposits |
Unrestricted funds General £ 369 369 Unrestricted funds General £ 6 |
Total funds £ 369 369 Total 2020 £ 6 |
Total 2019 £ 1,987 |
|---|---|---|---|
| 1,987 | |||
| Total 2019 £ 9 |
Page 11
THE PRAYER FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS FOR YEAR ENDED 31 DECEMBER 2020
6 Expenditure on charitable activities
| Note Events Filming and media Rent Repairs and maintenance Light and heat Sub-contract Motor expenses Travel and subsistence Computer and website Telephone Post, printing and stationery Insurance Bank and credit card costs Sundry expenses Independent examination Depreciation Grant funding of activities 7 Staff costs 9 |
Unrestricted funds General £ 5,721 823 38,351 2,716 242 8,031 3,070 84 9,813 2,356 1,748 308 (60) 297 2,100 346 910 15,386 92,242 |
Total 2020 £ 5,721 823 38,351 2,716 242 8,031 3,070 84 9,813 2,356 1,748 308 (60) 297 2,100 346 910 15,386 92,242 |
Total 2019 £ 37,759 511 38,313 2,371 354 3,456 3,985 289 10,751 2,450 2,176 294 1,236 133 2,040 455 3,197 15,083 |
|---|---|---|---|
| 124,853 |
Page 12
THE PRAYER FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS FOR YEAR ENDED 31 DECEMBER 2020
7 Grant-making
Analysis of grants
| Grants | Grants to institutions 2020 £ 2019 £ 840 1,140 |
Grants to individuals 2020 £ 2019 £ 70 2,057 |
|---|---|---|
8 Trustees remuneration and expenses
No Trustees, nor any persons connected with them, have received any remuneration from the charity during the year.
During the year, two Trustees have received other benefits from the charity in performance of their duties and services on behalf of the charity which amounted to £650 (2019 - £308).
9 Staff costs
The aggregate payroll costs were as follows:
| Staff costs during the year were: Wages and salaries |
2020 £ 15,386 |
2019 £ 15,083 |
|---|---|---|
The monthly average number of persons (including senior management team) employed by the charity during the year expressed as full time equivalents was as follows:
| 2020 | 2019 | |||
|---|---|---|---|---|
| No | No | |||
| Staff | 1 | 1 |
No employee received emoluments of more than £60,000 during the year.
Page 13
THE PRAYER FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS FOR YEAR ENDED 31 DECEMBER 2020
10 Tangible fixed assets
| 10 Tangible fixed assets | ||||||
|---|---|---|---|---|---|---|
| Short-term leasehold property £ Cost At 1 January 2020 21,738 At 31 December 2020 21,738 Depreciation At 1 January 2020 21,738 Charge for the year - At 31 December 2020 21,738 Net book value At 31 December 2020 - At 31 December 2019 - 11 Stock Stocks 12 Debtors Due from group undertakings Prepayments Accrued income |
Fixtures and fittings £ 5,194 5,194 4,748 89 4,837 357 446 |
Computer equipment £ 5,847 |
Plant and machinery £ 13,595 |
Total £ 46,374 46,374 44,900 346 45,246 1,128 1,474 2019 £ 5,600 |
||
| 5,847 | 13,595 | |||||
| 5,847 - |
12,567 257 |
|||||
| 5,847 | 12,824 | |||||
| - | 771 | |||||
| - | 1,028 | |||||
| 2020 £ 5,600 2020 £ 264,557 8,427 101 273,085 |
||||||
| 2019 £ 238,045 8,684 123 |
||||||
| 246,852 |
Page 14
THE PRAYER FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS FOR YEAR ENDED 31 DECEMBER 2020
13 Creditors: amounts falling due within one year
| 13 Creditors: amounts falling due within one year | ||
|---|---|---|
| Trade creditors Other loans Other taxation and social security Other creditors Accruals |
2020 £ 3,422 147,716 289 1,751 2,186 155,364 |
2019 £ 2,098 154,754 - - 2,186 |
| 159,038 |
Other loans includes the sum loaned by an anonymous person. A loan agreement was executed stating that the loan was interest free and unsecured. A letter of support has been received by the charity which states that this loan is subrogated to other creditors of the charity and that this guarantee will remain in place until such time as the charity has sufficient funds to meet all its obligations.
Page 15
THE PRAYER FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS FOR YEAR ENDED 31 DECEMBER 2020
14 Funds
| Unrestricted funds General General Funds Restricted funds Barn purchase fund House fund Total funds Unrestricted funds General General Funds Restricted funds Barn purchase fund Car fund House fund Total funds |
Balance at 1 January 2020 £ 95,083 14,687 1,000 15,687 110,770 Balance at 1 January 2019 £ 57,852 14,687 1,000 1,000 16,687 74,539 |
Incoming resources £ 125,566 - - - 125,566 Incoming resources £ 161,084 - - - - 161,084 |
Resources expended £ (92,242) - - - (92,242) Resources expended £ (123,853) - - (1,000) (1,000) (124,853) |
Balance at 31 December 2020 £ 128,407 14,687 1,000 |
|---|---|---|---|---|
| 15,687 | ||||
| 144,094 | ||||
| Balance at 31 December 2019 £ 95,083 14,687 1,000 - |
||||
| 15,687 | ||||
| 110,770 |
Page 16
THE PRAYER FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS FOR YEAR ENDED 31 DECEMBER 2020
15 Analysis of net assets between funds
| Tangible fixed assets Current assets Current liabilities Total net assets Tangible fixed assets Current assets Current liabilities Total net assets |
Unrestricted funds General £ 1,128 282,643 (155,364) 128,407 Unrestricted funds General £ 1,474 252,647 (159,038) 95,083 |
Restricted funds £ - 15,687 - 15,687 Restricted funds £ - 15,687 - 15,687 |
Total funds at 31 December 2020 £ 1,128 298,330 (155,364) |
|---|---|---|---|
| 144,094 | |||
| Total funds at 31 December 2019 £ 1,474 268,334 (159,038) |
|||
| 110,770 |
Page 17