## 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:
- Deborah Company UK Online Prayer Courts
- 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:
- select suitable accounting policies and apply them consistently;
- observe the methods and principles in the Charities SORP;
- make judgements and estimates that are reasonable and prudent;
- state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
- 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:
1. accounting records were not kept in respect of The Prayer Foundation as required by section 386 of the 2006 Act; or
2. the accounts do not accord with those records; or
3. 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
4. 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:
- 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
- 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