Company Registration No. 06569927 Charity Registration No. in England and Wales 1124541 Charity Registration No. in Scotland SC047326
ANDREW WOMMACK MINISTRIES - EUROPE
Annual Report and Financial Statements
Year ended 30 June 2021
ANDREW WOMMACK MINISTRIES - EUROPE
INDEX
| INDEX | |
|---|---|
| _________________ | |
| Company Information | 1 |
| Report of the Trustees | 2 |
| Statement of Financial Activities | 10 |
| Balance Sheet | 121 |
| Cashflow Statement | 12 |
| Notes to the Financial Statements | 13 |
ANDREW WOMMACK MINISTRIES - EUROPE
COMPANY INFORMATION
_________________
COMPANY REGISTRATION NUMBER
06569927
CHARITY REGISTRATION NUMBER
1124541
CHARITY REGISTRATION NUMBER IN SCOTLAND
SC047326
TRUSTEES AND DIRECTORS
A Wommack J Wommack J Donnelly (Chair) K Gruber B Epperhart M Pickett
MANAGING DIRECTOR AND COMPANY SECRETARY
D Burns
REGISTERED OFFICE
Grace International Centre Leamore Lane Walsall WS2 7PS
AUDITOR
Mazars LLP First Floor 2 Chamberlain Square Birmingham B3 3AX
BANKERS
Barclays Bank plc Ulster Bank plc The Bridge 37 High Street Walsall Carrick Fergus WS1 1LR Co Antrium BT38 7AN Lloyds Bank plc Bank of Scotland 121-125 High Street 27 Marchfield Avenue Bloxwich Dumfries Walsall Dumfriesshire WS3 3JG DG1 1GQ
SOLICITORS
Anthony Collins Solicitors LLP 134 Edmund Street Birmingham B3 2ES
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REPORT OF THE TRUSTEES
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The trustees present their report and accounts for the year ended 30 June 2021.
This report has been prepared in accordance with the Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard 102 applicable in the UK and Republic of Ireland.
Structure, governance, and management
Andrew Wommack Ministries - Europe (AWME) is a company limited by guarantee and has no share capital. The governing document of the company is the Articles of Association (as amended on 12 July 2016). AWME was Incorporated on 18 April 2008 in England and Wales.
In view of the establishment and expansion of other Andrew Wommack Ministry Offices in Europe, the primary focus of the Charity is the region of the United Kingdom.
The trustees, who are also the directors for the purpose of company law, and who served during the year are listed on page 1.
Current trustees have the power to appoint new trustees who are chosen from people already well known to the charity. All new trustees are required to follow an induction programme approved by the board and they, as well as existing board members, can access external training courses, seminars, and workshops.
An annual review of remuneration for the key management staff is undertaken by the Board and set accordingly. As a benchmark for the setting of salaries, we investigate the remuneration in other comparable charities, other Christian organisations, as well as consider the current financial situation of the Charity.
Relationship with other charities
The Charity has a close working relationship with Andrew Wommack Ministries Incorporated in the USA. Andrew Wommack Ministries Incorporated (AWMI) agreed for the Charity to have the right to use names, logos and other intellectual property of AWMI. This includes the right to use these in the form of teaching, printing, production and sale of all materials in formats such as books, CD and DVD teachings, study guides, all Charis Bible College teaching materials, through a long-term license agreement.
The Charity also supports other charities, outreaches, local evangelism, and Bible study groups in the United Kingdom and worldwide.
Public Benefit
The trustees have given due consideration to the general guidance published by the Charity Commission relating to public benefit and in particular to its supplementary public benefit guidance ‘The Advancement of Religion for the Public Benefit’ as amended and consider that the Public Benefit test has been met.
Objectives and policies
The Charity “Andrew Wommack Ministries – Europe” exists to advance the Christian faith for the benefit of the public and serves the public by providing the teaching on the Gospel of Jesus Christ to anyone and everyone, regardless of their ability to pay. Methods employed include distribution of written materials in form of books and other formats, audio CD, and DVD; conferences and meetings and a website, along with other internet media and television programmes on Christian broadcasting channels through AWMI.
It is an ongoing objective of Andrew Wommack to give free access to his teachings. Any household may request up to 12 CDs per calendar month, from an extensive catalogue, without any charge. Free downloads from the same catalogue can also be accessed via the website www.awme.net.
The Charity has five Charis Bible Colleges – in Belfast, Dewsbury, Dumfries, Exeter, and Walsall, and a Distance Learning programme where tuition fees are charged for courses.
Review of development, activities, and achievements, including plans for future periods
With the continuance of the global pandemic Covid-19 affecting the whole world into the financial year, beginning in the UK around March 2020, the charity had to continually adapt the operations in line with government restrictions for onsite staff, offsite staff, social distancing measures, legislation adherence, event postponements, and more. The charity remained vigilant continuing with its prior contingency planning to have most staff work offsite, with some operations to work remotely as much as operationally possible, purchasing extra equipment, updating software, and telecommunications abilities to continue to facilitate this. All our bible colleges recommenced onsite as the government guidance allowed this in September 2020. They then had to move to online learning from late October/early November 2020 as the UK pandemic situation deteriorated again and restrictions were again increased. We had already implemented regular communication systems to keep staff and students up to date in areas of government health advice, safe working
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and studying environments, working from home guidance. We continued providing all manner of communications via email updates, staff zoom meetings, VPN access to ministry portals, and continue with a Covid management committee. Several planned onsite in person events were cancelled again, including our annual Ministers Conference (October 2020) and late Spring Grace and Faith conference (May 2021). This affected both our income and expenses somewhat and is reflected in our accounts. We did manage to offer some livestream events instead but both with reduced income and expenditures as a result. Most all our annual college mission trips were cancelled as travel was not allowed. Most of our five bible colleges were creative and facilitated Zoom missions’ trips where they outreached with both local and overseas people for ministry over the zoom platform. This saw our local UK students could minister to people in South Africa, Scandinavia, Malaysia, Hong Kong, Singapore and more utilising the zoom platforms to do so. All of this played a role in our year end activities affecting both fundraising incomes and expenses for missions across all colleges. Any mission trips monies collected early in the college year have been successfully refunded. Overseas mission trips are postponed going forward in this next season until such times as safety can be assured again. The income of the charity has remained very stable since the pandemic began and the ministry decided again not to participate in the government furlough scheme to subsidise staff salaries in the financial year. The charity did not make anyone redundant due to the pandemic; no jobs were lost. The staff have retained a very healthy work ethic, a great attitude and continually demonstrated flexibility and resilience in adapting to a significantly changed societal, personal, and economic business environment here locally.
The Charity does, however, continue to seek to grow in its activities to advance the Christian faith through the faithful partnerships of an increasing number of people helping us to bring the Word of God to the public. We have throughout the year fulfilled many requests coming to us for prayer, Bible studies, participation in online conferences/seminars, teachings, and materials. The meeting of such needs as these will remain our focus in the future albeit adapting to the Covid-19 pandemic restrictions in society at present.
In late October/early November 2020 all our UK bible colleges had to transition offering their courses fully online, using virtual platforms as onsite attendance at colleges was again restricted everywhere by Covid legislation. Our ministry offices also had to further reduce back to a skeleton staff from the end of October 2020 to cooperate with government guidance. The leadership team at the ministry in close cooperation with the board, reimplemented business operations continuity plans to work offsite again. We could foresee the restriction issues and did another risk assessment on what we should do when we had to go offsite again. Lessons were learned from earlier in the calendar year with the start of the pandemic, and again solutions were found considering all areas of our operations from phonelines, finances, production, college provision and plans established and implemented to deal with various scenarios. Laptops, software, mobile phones were further purchased ahead of time for use in contingency moments ensuring operational integrity.
Andrew Wommack’s daily Gospel Truth programmes (aired Mondays to Fridays) continue to be broadcast by AWMI globally on God TV, Daystar, TBN and in the UK/Europe, among others, through Revelation TV. This outreach makes the work of the ministry potentially accessible to over 3.4 billion people worldwide.
The ministry presence on International Social Media platforms, maintained by the office in Colorado, are of increasing importance to our UK Charity. During the year, our international social media accounts continued to grow in reach with over 1,260,214 “followers” on Facebook, to over 64,261 followers on Twitter, over 199,331 on Instagram, and increased to over 168,000 subscribers on our YouTube channel. There are numerous hours of valuable content to watch and interact with on these platforms. Other social media streams such as Pinterest, and Vimeo maintain a smaller but growing number of followers. Conferences and daily Bible Studies by Andrew Wommack are being streamed live on Facebook, YouTube, and websites such as Gospel Truth TV. These activities generate great interest for teaching resources, partnerships, and student applications for courses. The UK office have their own Facebook, Instagram & Twitter pages both reflecting and increasing the social media global outreach locally and throughout Europe with more UK specific information’s. The ministry has developed an online TV media platform called Gospel Truth tv: www.gospeltruth.tv . This platform hosts many of our global conferences, daily bible studies programmes, Gospel Truth daily tv shows and other teachers of the Gospel. This will be increasingly used for online events alongside Facebook but will eventually replace it as an internal option with a global reach.
Our website, www.awme.net received on average 17,141 new page views each month, reading free articles, viewing tv programmes and finding out more about Charis Bible College programmes to study. Visitors can download free audio and video files, purchase products in our improved online shop, as well as entering partnerships and making donations. Our website and social media channels are continually evaluated and developed as we seek to increase the free availability of teachings on the Gospel of grace through Jesus Christ on various platforms that are accessible to everyone.
Throughout the UK region, we seek opportunities to minister the Gospel to those in need. We seek to deepen our relationship with our partner base, as well as ministers and churches, to share the vision of reaching out to people with the good news of the Gospel.
Our annual Grace and Faith Conference was due to be held onsite at Telford International Centre during May 2021. This was cancelled again because of the Global Covid-19 pandemic. The UK ministry agreed with our American office (AWMI) and arranged for this event to be broadcast online in May 2021. This saw increased collaboration between the American and UK offices. This event was broadcast on livestream via our UK website and Facebook pages. We interacted with the viewers through online text messages and comments sections, encouraging them to ask questions or request
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______________ prayer as they desired. We extended our phoneline service hours over this event to facilitate prayer ministry for those watching online.
Our annual Ministers’ Conference was due to be held in our ministry headquarters in Walsall in October 2020. Through this, the charity seeks to support and equip local and national church leaders, pastors, missionaries, and other Christian leaders, by providing a forum for fellowship and networking, as well as offering a time of spiritual refreshment. This has historically always been well attended onsite and provides a great opportunity for the ministry to connect with increasing numbers of leaders and supporters in the body of Christ. Delegates have come from the UK, Europe Asia, and Africa. Due to further government Covid restrictions this event was livestreamed on a private channel over three evenings with guest ministers from the USA.
No onsite conferences were able to take place in the financial year due to continuing restrictions. The charity internationally proactively reached out to its partners and supporters, offering them free books for themselves and families/friends. We also arranged special teachings outside normal TV teachings for our viewers and did multiple online ministry updates.
The Helpline we are operating, received 16,753 calls during the year, which averages 67 calls per working day. These calls included requests for prayer, with many people being helped to access the healing power of God for physical, emotional, and circumstantial difficulties, and others being encouraged through sharing the Word of God. Many of our staff were able to work from home and so continue offering this core ministry service due to technological solutions. In addition to prayers over the phone, letters and emails containing prayer requests were received and prayed over, and many more people were helped and encouraged as our Encouragement department responded to all of these differing individual questions.
Throughout the financial year the charity supplied 9,689 products free of charge, mainly in form of CDs, but also in DVD and written formats. Almost every audio teaching in our catalogue is available for download from our website, making public access free and easy. E-books, books, study guides, CD and DVD albums and many other teaching products are available to be purchased on our website, both in English and other languages.
The World Outreach Translations Department continued to grow, having increased its support for AWM Offices and Charis Bible Colleges by providing translation services for multiple World Outreach initiatives globally. Gospel Truth programming has been translated and then broadcast in both Italy and France with the French office growing and receiving both logistical and financial support from the UK operations. The French project is a continuing collaboration between multiple AWM offices, including France, Canada, South Africa, and the UK, which allows the ministry to serve and reach a large majority of the French speaking world. The UK Translations team supported the translators and translation requirements for the Grace and Faith conferences that were live streamed to the UK, France, Hungary, Russia South Africa, and Germany, using Zoom technology. The department continues to manage and facilitate multiple new translation projects for Gospel Truth programming, and Charis Bible College curriculum courses materials, foreign book translations and multiple media types needed by the global ministry offices and international Charis colleges. The UK ministry is currently working across 31 languages in book publications, 37 languages in study guides and is broadcasting Gospel Truth TV shows in 7 other languages across the globe.
Charis Bible College
Our Charis Bible Colleges in Walsall, Belfast, Dewsbury, Dumfries, and Exeter saw a good level of student attendance during the school year, with 225 students taking part in our courses, despite ongoing restrictions in society. Students initially attended both our day school and Hybrid programme on campus, before then moving online, using both our My.Charis and Zoom platforms. Hybrid students meet on two Saturdays per month for fellowship, live teaching, and discussion groups. We were greatly encouraged by the number of students enrolling in our courses and their commitment to studying the word of God.
A total number of 225 students celebrated their successful completion of our courses at the end of the school year in May 2020, with 68 students passing the first-year course, 104 graduating from the second-year course and 53 passing the thirdyear leadership programme. Whilst the emphasis of our first-year class is to lay foundations for a successful Christian life and sow seeds for students to discover their gifts and God’s calling on their life, our second-year programme is more practically oriented and designed to prepare students to minister the gospel of Jesus Christ to others. For our third-year class, we have developed a specific leadership programme which includes leadership and ministry training, as well as business and finance aspects of ministry. This helps in preparing our students for leadership positions in churches, business, workplaces in general and Christian enterprises and missions. Our students performed well in all aspects of the courses offered. These courses all started onsite but due to Covid-19 pandemic shutdowns, all students completing their course had to do so online. Our Directors Training Programme has twenty-five students graduate from level 1 course, and three graduate from level two internship course. These courses are particularly for third year graduates who desire to work for the ministry locally or be involved in working on new projects internationally.
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______________ Our Distance Education learning programme consists of a correspondence course, enabling students to study the first-year curriculum of Charis Bible College at their own pace from their home. Since May 2018, we are offering these life impacting video teachings also on a tablet through an app called: eCharis. We had 135 active students studied with Charis Bible College distance learning during the year, with 19 students completing the course to date in 2021. For pastors and ministers, AWMI has designed a special course entitled “Continuing Education for Ministers”, giving participants an online access to a selected range of Charis Bible College courses. This course is now offered as a scholarship for those ministers and pastors joining our international minister’s association called the ‘Association of Related Ministries International’ (ARMI). This is administered from Colorado and open to UK applicants, some of whom have completed the course.
Normally, the public are invited to attend our premises in Walsall and Belfast once a month to take part in a Healing School, where we teach and minister the love of God to people in word and prayer. Both Dewsbury and Walsall’s campus offered Healing University events via live streams on several occasions through the academic year. All UK colleges offered outreach seminars utilising the Zoom platform throughout the year alongside regular school activities to encourage engagement with supporters and alumni.
Charis Bible College UK maintains a website offering a unified design feature for all our UK campuses, with more online application functions to increase awareness for potential students and the public. It provides detailed information of our Bible Colleges’ events, conferences, and the courses we offer in different locations throughout the UK.
The Board of the Charity intends to open further Charis Bible Colleges in the United Kingdom. To support this growth, a special Directors Training Programme (DTP) (Level 1) and Internship (Level 2) has been designed, to train up and develop future leaders of new Charis Bible Colleges. A DTP Training Manager has been appointed to oversee this developing department within the UK ministry. In the academic year 25 students completed the DTP level 1 and there were 3 students (current staff members) who completed the DTP internship training. Level 1 is continual training in various leadership and ministry activities, level 2 is the supervised application of this training. A college location in London is being considered presently pending approval.
Outlook
We are already preparing for our Grace and Faith Conference in June 2022 at Telford International Centre, which will be open to the public free of charge. This will depend on pandemic scenarios at the time and how the government decide large scale events can be managed with passport proposals yet to be finalised. We are finalising preparations for the European Ministers’ Conference in October 2021 at the start of October. This will be a time of spiritual refreshment for church leaders and pastors and is normally very well attended but again will be offered this year via private livestream that UK and European ministers can register for, joining the American Ministers Conference taking place at the same time. This is an important aspect of our ministry activities and support work to the body of Christ.
We will continue to promote our teaching materials and Charis Bible Colleges at other Christian conferences and events throughout the year as opportunities arise.
All our five bible colleges have reopened in September 2021, offering a variety of learning experiences, including onsite, and online, or ‘blended’ learning, which is a combination of both. This continues to be guided by the government guidelines and restrictions in each of the UK devolved administrations, which have slightly differing guidelines presently. If a further lockdown this winter ensues the UK colleges are all ready to transition online again.
The trustees’ aim is to increase the number of people who know about the charity and its work. To reach this goal, we will use different formats, media, and technologies available to us. The trustees will consider new initiatives and activities to achieve and further the objectives of the charity. This coming year it is intended to offer online conferences until such time as guidelines become transparent and identify any changes allowing people back on site in safe numbers and space.
It is of growing interest and importance to the trustees to reach more people with the gospel of Jesus Christ. Therefore, our ministry offering free resources through conferences, availability of teaching programmes on TV and radio as well as social media will continue. Access for the public to teachings on the Word of God are made available through our websites as they can be downloaded for free.
The charity launched a legacy programme in August 2018 as part of its funding activities, giving partners and friends of the ministry the opportunity to provide a long-lasting legacy in supporting the charity’s endeavour to advance the Christian faith and reach more people to know and receive the life-transforming good news of the gospel of Jesus Christ. Several enquiries were received during the first three years of this exciting programme, and we hope this will build up further in the future.
The Board of the Charity recognises the importance of a well-trained, motivated staff force with good team spirit to achieve its objectives and therefore undertakes an annual staff salary and benefit reviews and has enrolled its staff in a workplace pension scheme with National Employment Savings Trust (NEST). Leadership training, on the job training and suitable seminars from various agencies are being used to enhance the skill set of our employees. Presently, most staff are
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REPORT OF THE TRUSTEES
______________ again working remotely but we are phasing back into onsite working, alongside updated government guidance, and current and future risk assessments.
Fundraising
The Charity is registered with the Fundraising Regulator, aware of its regulations and complies fully.
There have been no complaints in the year nor in the prior year.
Financial review
In this financial year the Charity achieved a surplus of £188,032 to be carried forward into the new financial year. Total income decreased by 6.8% to £3,044,017; £2,704,694 related to general activities and £339,323 to restricted activities. Decreased student numbers at Charis Bible College led to an expected decrease in tuition fees, while donations and partnership receipts increased over last years’ income.
General Expenses are mainly due to rising staff cost, general cost and maintenance cost to cover our expanded ministry outreach, these were reduced to an overall Expenditure for the year of £2,855,985 which is a reduction of 5.2% compared to the previous years’ expense, of £3,012,951 Relating to general activities, expenditure was £2,510,512 and £345,473 to restricted activities.
The charitable funds at the year-end were £1,986,473 divided into general funds of £589,339, designated funds of £1,070,545 and £326,589 of restricted funds.
Both income and expenditure were affected by the pandemic with several larger annual events being cancelled, impacting both incomes normally generated and savings on expenditure not spent. Charis Bible College student mission trip were also affected and fundraising activities for those was kept to a minimum as it was expected travel would not be possible. Most mission trips took place on an online platform using Zoom so fundraising was minimal. Any monies raised at the start of the school year when restrictions were less were refunded. No overseas trips were prepaid in anyway as it was expected these would not happen which was a correct assumption.
Reserves
In line with the Charity Commission guidelines, the Board of Trustees define the Charity’s free reserves as unrestricted assets, excluding those held as fixed assets, which are available to the Charity and to be expended at the Trustees’ discretion in furtherance of any of the Charity’s objectives, but which have not yet been spent, committed, or designated.
The Board of Trustees confirm that the free reserves should be held at a minimum of £198,800, representing two months’ salary, pension, and national insurance cost together with twelve months’ payment obligations of long-term fixed commitments. At the end of the year free funds of £589,339 were available, which is consistent with the amount set as per the Charity’s policy. Maintaining the level of free reserves will be a focus of the trustees for the current financial year.
Risk Management
Business risks of the Charity have been identified and measures to cover these are in place. New risks were identified during the year due to the global pandemic. These risks have been identified and risk assessed. All new policies and procedures have been reviewed and will continue to be reviewed by the Board. This last calendar (2020) and financial year (20-21) saw an unexpected global pandemic develop rapidly, which has disrupted worldwide travel, individual safety, security, business operations, incomes, and the activities of society and business as a whole and has been considered in our operational activities via ongoing contingency and continuity planning. We have previously and recently implemented contingency planning in all our operational activities throughout the charity, moving towards continuity. We will continue to scan the environment to risk assess, plan, adapt and change as required proactively as best we can.
A major risk to the Charity is maintaining a level of funding for its income to be sufficient to meet all its obligations. To mitigate this risk the Charity has built up a strong partner base with over 3,972 partners, increasing every year, who give financially to the cause of the Charity in support of its work. Further expansion of Charis Bible Colleges, and our distance learning options, with an increasing number of students will support incoming funds. The ongoing cost management with an approval procedure for expenditure items should ensure the liquidity of the Charity to meet all its obligations. Our partnership income and donation levels remain constant during the time since the pandemic began to affect the UK economy with events income been reduced due to their inability to take place because of restrictions. Through the financial year due to the sustained support of our partners the Charity did not need to put any staff on the government furlough scheme, nor did we make any staff members redundant due to the business environment from any pandemic impacts. We consider that the Charity has had a successful year in achieving the financial results that we have given the current global pandemic scenarios. We expect the same levels of support in the coming year.
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ANDREW WOMMACK MINISTRIES- EUROPE REPORT OF THE TRUSTEES Statemtnt of responstblities The truste¢s. who are also the dir&ior5 of AThlrtw Wommaek nistrY¢S - Ewope frff the wrpose of panY law. are responsible f preparing the Report and the Acc(xmts in accordano wth applicable law alld United Kingdom Acc(xmtinB Stsndards (United kn"rt8d(*n CnllY Ac£eobJ Accountin8 Pr¥li¢¢) Cofflpany law requires the MceS to prepare accojnts f(Y each financial year which give a trne and fair view of the stat¢ of affairs of the chaTitsble company and of the InCmIng Teswrces and applic1( of res(wr¢tt. including the income irtd expenditure. of the chariuble cornpary fcf that year. In preparinB thes¢ x¢(wnLX the tsustr¢S •fE W4uired to."
elt suitable rKcountin8 w1¢1¢5 and su[Y them ¢sistentlY.
follow applicable ac0n11n8 sthndard& Subj any rnawial d¢pArtw dis¢105ed •fyJ expl•in•JJ in financial Jtatemenis. - mlke judgements and e5timat¢s are reaxmable and pnmlent: and - prepare the acco19 the 8Lxn8CAThrxm b•sis unless li is inApprqxia io prewme ihat the Chariry will ¢tinue in operatirn. The trustees are resp¢Msible fcf keepin8 #d?]le a¢¢<wnting recryds that disc105e with rellxmable accurncy ai any time the financial posiiion of the Chan"ty and enable them to ensure that the Comply with the Comp¥nies Art 20116. They are algo respcfflsible fcr ufe8uardin8 the assds of the Chlty •nd hm¢¢ fix tskinB r¢wmabl¢ g¢eps for the preveniicm and de10ft of fraud (rther ir1wltie& Bre%it We have C(91d¢[clI the p(rteniial impxt of Brexit the Charity and whilA thexe may be Si1r1C&rti effeLts for the wider e£onorny, which cwld. in iurn. the Chuity's p0nDnc¢ we h•vt nL identified any specific risks that iy material enou8h io r4uire furthu dixclosure here Digeloiure of•nformxtioTr to lh¢ •yditor Each of the trnsttts has c4)nfiTm¢d that ther¢ is no irtf(Thi&ti(m of whi¢h they are aware which 1$ Televt to the audi( but of whi¢h the 8uibtor is unawue They have further confimied that thry have thken appropnate rteps io ida)tify su¢h relevant infornlat1( •nd to est11$h that the wditir is aware of Inf(ffnUti. The Report of the Truses ha5 beth ryepartl in icc4th¢¢ with the Jm7al wovtsions within Part 15 and section 414Blb) of the Companies Act 21KK). r1ft8 to small entities. Approv%xI by ¢he trus¢e¢s CM 2P Octcthr 2021 Ind si8ned the1rbdIf by Mr John Donoelly Chir OrTrstee$
ANDREW WOMMACK MINISTRIES - EUROPE
INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF ANDREW WOMMACK MINISTRIES - EUROPE
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Opinion
We have audited the financial statements of Andrew Wommack Ministries – Europe (the ‘charity’) for the year ended 30 June 2021 which comprise the Statement of Financial Activities, the Balance Sheet, Statement of Cash Flows, and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 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:
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give a true and fair view of the state of the charity’s affairs as at 30 June 2021 and of its income and expenditure for the year then ended;
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have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
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have been prepared in accordance with the requirements of the Companies Act 2006, the Charities and Trustee Investment (Scotland) Act 2005 and regulation 8 of the Charities Accounts (Scotland) Regulations 2006.
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 charity 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 the parent charity’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 trustees are responsible for the other information. The other information comprises the information included in the Report of the Trustees, other than the financial statements and our auditor’s report thereon. 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.
In connection with our audit of the financial statements, 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 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 or a material misstatement of the other information. If, based on the work we have performed, 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 and the Charities and Trustee Investment (Scotland) Act 2005, regulations 6 and 8 of the Charities Accounts (Scotland) Regulations 2006 (as amended).
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ANDREW WOMMACK MINISTRIES - EUROPE
INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF ANDREW WOMMACK MINISTRIES - EUROPE
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In our opinion, based on the work undertaken in the course of the audit:
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the information given in the Trustees’ Report for the purposes of company law, for the financial year for which the financial statements are prepared is consistent with the financial statements; and
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the Trustees’ Report has been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
In light of the knowledge and understanding of the charity and its environment obtained in the course of the audit, we have not identified material misstatements within the Trustees’ Report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 and Charities Accounts (Scotland) Regulations 2006 requires us to report to you if, in our opinion:
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adequate and proper accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
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the financial statements are not in agreement with the accounting records and returns; or
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certain disclosures of trustees’ remuneration specific by law are not made; or
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we have not received all the information and explanations we require for our audit.
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the trustees were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies’ exemption in preparing the Trustees’ Report and from the requirement to prepare a Strategic Report.
Responsibilities of Trustees
As explained more fully in the trustees’ responsibilities statement set out on page 7, 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 charity’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 charity 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 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 the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of the financial statements.
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. Based on our understanding of the charity and its activities, we identified that the principal risks of non-compliance with laws and regulations related to employment regulation and fraud, and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements, such as the Companies Act 2006.
We evaluated the trustees’ and management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls) and determined that the principal risks were related to posting manual journal entries to manipulate financial performance, inappropriately shifting the timing and basis of revenue
9
ANDREW WOMMACK MINISTRIES - EUROPE
INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF ANDREW WOMMACK MINISTRIES - EUROPE
________________
recognition, management bias through judgements and assumptions in significant accounting estimates, in particular in relation to fund accounting, and significant one-off or unusual transactions.
Our audit procedures were designed to respond to those identified risks, including non-compliance with laws and regulations (irregularities) and fraud that are material to the financial statements. Our audit procedures included but were not limited to:
-
Discussing with the trustees and management their policies and procedures regarding compliance with laws and regulations;
-
Communicating identified laws and regulations throughout our engagement team and remaining alert to any indications of non-compliance throughout our audit; and
-
Considering the risk of acts by the group and the parent charity which were contrary to applicable laws and regulations, including fraud.
Our audit procedures in relation to fraud included but were not limited to:
-
Making enquiries of the trustees and management on whether they had knowledge of any actual, suspected or alleged fraud;
-
Gaining an understanding of the internal controls established to mitigate risks related to fraud;
-
Discussing amongst the engagement team the risks of fraud; and
-
Addressing the risks of fraud through management override of controls by performing journal entry testing.
There are inherent limitations in the audit procedures described above and the primary responsibility for the prevention and detection of irregularities including fraud rests with management. As with any audit, there remained a risk of nondetection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations or the override of internal controls.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
Use of the audit report
This report is made solely to the company’s members as a body in accordance with Chapter 3 of Part 16 of the Companies Act 2006, and section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005, regulation 10 of the Charities Accounts (Scotland) Regulations 2006 (as amended) and with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body for our audit work, for this report, or for the opinions we have formed.
Ian Holder (Senior Statutory Auditor) for and on behalf of Mazars LLP Chartered Accountants and Statutory Auditor First Floor Two Chamberlain Square Birmingham B3 3AX
Date: Nov 23, 2021
10
ANDREW WOMMACK MINISTRIES - EUROPE
STATEMENT OF FINANCIAL ACTIVITIES
FOR THE YEAR ENDED 30 JUNE 2021
________________
| General | Restricted | Total | General | Restricted | Total | ||
|---|---|---|---|---|---|---|---|
| funds | funds | 2021 | funds | funds | 2020 | ||
| Notes | £ | £ | £ | £ | £ | £ | |
| INCOME FROM | |||||||
| Donations | 3 | 797,293 | 305,725 | 1,103,018 | 773,692 | 351,822 | 1,125,451 |
| Charitable activities: | |||||||
| Partnership programmes | 4 | 1,066,154 | - | 1,066,154 | 1,004,063 | - | 1,004,063 |
| Sales | 4 | 168,982 | - | 168,982 | 157,462 | - | 157,462 |
| Charis Bible College fees | 4 | 642,037 | 33,598 | 675,635 | 814,255 | 83,347 | 897,602 |
| Other trading activities | 5 | 28,867 | - | 28,867 | 79,003 | - | 79,003 |
| Investments | 6 | 1,361 | - | 1,361 | 2,097 | - | 2,097 |
| ─────── | ─────── | ─────── | ─────── | ─────── | ─────── | ||
| TOTAL INCOME | 2,704,694 | 339,323 | 3,044,017 | 2,830,509 | 435,169 | 3,265,678 | |
| ─────── | ─────── | ─────── | ─────── | ─────── | ─────── | ||
| EXPENDITURE ON | |||||||
| Raising funds | 135,886 | - | 135,886 | 130,126 | - | 130,126 | |
| Charitable activities | |||||||
| Sales | 60,389 | - | 60,389 | 82,609 | - | 82,609 | |
| Charis Bible College | |||||||
| expenditure | 663,689 | 4,853 | 668,542 | 803,008 | 57,131 | 860,139 | |
| Relating to evangelism and | |||||||
| furtherance of the gospel | 1,597,089 | 340,620 | 1,937,709 | 1,584,478 | 302,056 | 1,886,534 | |
| Other | 53,459 | - | 53,459 | 53,543 | - | 53,543 | |
| ─────── | ─────── | ─────── | ─────── | ─────── | ─────── | ||
| TOTAL EXPENDITURE | 7 | 2,510,512 | 345,473 | 2,855,985 | 2,653,764 | 359,187 | 3,012,951 |
| ─────── | ─────── | ─────── | ─────── | ─────── | ─────── | ||
| NET INCOME / | 194,182 | (6,150) | 188,032 | 176,745 | 75,982 | 252,727 | |
| EXPENDITURE | |||||||
| MOVEMENT IN FUNDS | |||||||
| RECONCILIATION OF | |||||||
| FUNDS | |||||||
| Total funds brought forward | 1,465,702 | 332,739 | 1,798,441 | 1,288,957 | 256,757 | 1,545,714 | |
| ─────── | ─────── | ─────── | ─────── | ─────── | ─────── | ||
| TOTAL FUNDS CARRIED | 1,659,884 | 326,589 | 1,986,473 | 1,465,702 | 332,739 | 1,798,441 | |
| FORWARD | |||||||
| ═══════ | ═══════ | ═══════ | ═══════ | ═══════ | ═══════ |
The statement of financial activities includes all gains and losses in the year. All income and expenditure derive from continuing activities. The notes on pages 13 to 25 form part of these financial statements.
11
ANDREW WOMMACK14llNISTIUES- EUROPE BAIANCE SHEET AS AT 30 JUNE 2(121 CoMpAY number: 06569927 2021 2020 Nola FIXED ASSETS Tangible assets .070.$45 1.104.894 1070J45 1.104.894 CURRENT ASSETS Stocks Debtors Cash 01 bk And in hand 12 13 60J91 76.760 1.027.983 79.911 141.189 1.165th34 1382.933 CREDITORS: AMOUNTS FALLIiYG DUE WITHIY ONE YEAR 14 1249.7116) (589J861 NET CURRENT ASSETS 915.928 693.547 TOTAL ASSETS LESS CURRENT LIABILITIES .9K473 1,798.441 NET ASSETS I.9473 1,798.441 FUNDS Gerter funds De5i8nated fund5 Re51rithed fund5 15 Is 16 360.808 1,104J94 332.739 1.070,.545 326 589 1,9W473 1,798.441 These financi stsiemeftts have been wepar¥l in with the provision$ of Pan I S ofthe Companie5 A¢t 21Th relating to small canpanies. These financial llements w¢r¢ appr(w•l and autl#xisd fLx isw¢ by th¢ Tru¢¢3 2P O¢trtJer 2021 and S18n on their behalf by Mr John Donnelly ChAir ofTrustt The notes on pases 13 to 25 form put of thes¢ financial ststemettts. J2
ANDREW WOMMACK MINISTRIES - EUROPE
STATEMENT OF CASHFLOWS FOR THE YEAR ENDED 30 JUNE 2021
Company number : 06569927
________________
| 2021 | 2020 | ||
|---|---|---|---|
| Note | £ | £ | |
| Cash flows from operating activities | |||
| Net cash from / (used in) operating activities | 20 | 1,713 | 355,020 |
| ─────── | ─────── | ||
| Cash flows from investing activities: | |||
| Purchase of tangible fixed assets | (25,563) | (24,045) | |
| ─────── | ─────── | ||
| Net cash used in investing activities | (25,563) | (24,045) | |
| ─────── | ─────── | ||
| Change in cash and cash equivalents in the year | (23,850) | 330,975 | |
| Cash and cash equivalents brought forward | 1,051,833 | 720,858 | |
| ─────── | ─────── | ||
| Cash and cash equivalents carried forward | 1,027,983 | 1,051,833 | |
| ═══════ | ═══════ |
The notes on pages 13 to 25 form part of the financial statements.
13
ANDREW WOMMACK MINISTRIES - EUROPE
NOTES TO THE FINANCIAL STATEMENTS For the year ended 30 June 2021
___________
1 ACCOUNTING POLICIES
Basis of preparation
The financial statements are prepared under the historical cost convention in accordance with "Accounting and Reporting by Charities; the Statement of Recommended Practice applicable to Charities preparing their accounts in accordance with the Financial Reporting Standard 102 and applicable accounting standards, the Companies Act 2006 and the Financial Reporting Standard 102. The principal accounting policies adopted in the preparation of the financial statements are set out below.
Going concern
Andrew Wommack Ministries Europe operates as a going concern and the Trustees are of the view that it will continue to do so for the foreseeable future.
Income
Donations that provide core funding or are of a general nature are recognised where there is entitlement, probability of receipt and the amount can be measured with sufficient reliability. Such income is only deferred when:
-
The donor specifies that the grant or donation must only be used in future accounting periods; or
-
The donor has imposed conditions which must be met before the charity has unconditional entitlement; or
-
The donor provides income to meet the cost of providing particular services which will be incurred in future accounting periods.
Income from commercial trading activities is recognised as earned (as the related goods and services are provided).
Expenditure
Expenditure is recognised on an accruals basis as a liability is incurred. A liability is recognised as soon as there is a legal or constructive obligation committing the Charity to the expenditure. Expenditure includes any VAT which cannot be fully recovered:
-
Costs of generating funds comprise the costs associated with attracting voluntary income and the costs of trading for fundraising purposes.
-
Charitable activities 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.
-
Governance costs include those costs associated with meeting the constitutional and statutory requirements of the charity and include the audit fees and costs linked to the strategic management of the charity.
-
Support costs include central functions and have been allocated to activity cost categories on a basis consistent with the use of resources e.g. allocating property costs by areas, or per capita, staff costs by the time spent and other costs by their usage.
Fund accounting
-
General funds are unrestricted funds available for the use at the discretion of the Trustees in furtherance of the general objectives of the charity.
-
Restricted funds are subjected to restrictions on their expenditure imposed by the donor or through the terms of an appeal.
14
ANDREW WOMMACK MINISTRIES - EUROPE
NOTES TO THE FINANCIAL STATEMENTS For the year ended 30 June 2021
___________
1 ACCOUNTING POLICIES (CONTINUED)
Tangible fixed assets and depreciation
Tangible fixed assets other than freehold land are stated at cost less depreciation. Depreciation is provided at rates calculated to write off the cost less estimated residual value of each asset over its expected useful life, as follows:
Freehold buildings over 50 years Freehold buildings refurbishment over 9 years Computer and other equipment over 4 years Fixtures and fittings over 3 years
Stocks
Stock is valued at the lower of cost and net realisable value. Net realisable value is based on the selling price of the books for resale.
Foreign currency translation
Transactions denominated in foreign currencies are recorded at the rate ruling at the dates of the transactions or at an average rate for the period if the rates do not fluctuate significantly. Monetary assets and liabilities are translated at year end exchange rates or, where appropriate, at rates of exchange fixed under the terms of the relevant transaction. All resulting exchange rate differences are included in the net outgoing resources.
Financial instruments
The Charity 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.
Critical accounting judgements and key sources of estimation uncertainty
The charity makes estimates and assumptions concerning the future. The estimates and assumptions have no material impact on the carrying amounts of assets and liabilities within the accounts.
In the application of the accounting policies, Trustees are required to make judgement, estimates and assumptions about the carrying value of assets and liabilities that are not readily apparent from other sources. The estimates and underlying assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an on-going basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period or in the period of the revision and future periods if the revision affected current and future periods.
Judgements made by the Trustees in the application of these accounting policies that have significant effect on the financial statements and estimates with a significant risk of material adjustment in the next year, are deemed to be in relation to the depreciation rates of tangible fixed assets and are discussed above.
The areas where these judgements and estimates have been made include the following for the group:
- Depreciation and residual values
The Trustees have reviewed the asset lives and associated residual values of all tangible fixed asset classes, and have concluded that the asset lives and residual values are appropriate.
15
ANDREW WOMMACK MINISTRIES - EUROPE
NOTES TO THE FINANCIAL STATEMENTS For the year ended 30 June 2021
2 LEGAL STATUS
The Charity is a company limited by guarantee and has no share capital. The liability of each member in the event of winding up is limited to £1.
3 INCOME FROM DONATIONS
| INCOME FROM DONATIONS | ||||
|---|---|---|---|---|
| 2021 | 2020 | |||
| Unrestricted | Restricted | Total | Total | |
| £ | £ | £ | £ | |
| Donations | ||||
| World Outreach | - | 96,058 | 96,058 | 100,639 |
| Rest of the World Translation | - | 10,877 | 10,877 | 13,036 |
| UK Building Fund (Building) | - | 59,807 | 59,807 | 61,938 |
| USA Foundation Builder (Building) | - | 54,746 | 54,746 | 63,158 |
| God TV | - | 16,792 | 16,792 | 11,931 |
| Uganda Outreach | - | 10,553 | 10,553 | 12,923 |
| Grace and Faith Appeal | 57,943 | - | 57,943 | 97,240 |
| Rest Fund | - | 5,800 | 5,800 | 7,458 |
| Declaration of Dependence Fund | - | - | - | - |
| US Grace Partnership Fund | - | 17,744 | 17,744 | 6,229 |
| Sturman Building Project | - | 2,317 | 2,317 | 9,801 |
| Charis Bible College donations and offerings | 140,743 | - | 140,743 | 186,308 |
| Abundance fund | 35,766 | - | 35,766 | 30,153 |
| General donations | 562,841 | - | 562,841 | 507,856 |
| Woodland Park Outbuildings | - | 31,031 | 31,031 | 16,781 |
| ─────── | ─────── | ─────── | ─────── | |
| Total donations | 797,293 | 305,725 | 1,103,018 | 1,125,451 |
| ═══════ | ═══════ | ═══════ | ═══════ |
16
ANDREW WOMMACK MINISTRIES - EUROPE
NOTES TO THE FINANCIAL STATEMENTS For the year ended 30 June 2021
___________
4 INCOME FROM CHARITABLE ACTIVITIES
| 2021 | 2020 | ||||
|---|---|---|---|---|---|
| Unrestricted | Restricted | Total | Total | ||
| £ | £ | £ | £ | ||
| Partnership Programmes | |||||
| Partnership: Grace | 969,706 | - | 969,706 | 899,386 | |
| Partnership: LFT | 39,127 | - | 39,127 | 41,455 | |
| Partnership: Other | 44,261 | - | 44,261 | 47,692 | |
| Partnership: College | 13,060 | - | 13,060 | 15,530 | |
| ─────── | ─────── | ─────── | ─────── | ||
| 1,066,154 | - | 1,066,154 | 1,004,063 | ||
| ═══════ | ═══════ | ═══════ | ═══════ | ||
| Sales | |||||
| Book sales and other ministry products | 168,982 | - | 168,982 | 157,462 | |
| ─────── | ─────── | ─────── | ─────── | ||
| 168,982 | - | 168,982 | 157,462 | ||
| ═══════ | ═══════ | ═══════ | ═══════ | ||
| Charis Bible College Fees | |||||
| Student fees | 532,119 | 33,598 | 565,717 | 777,792 | |
| Correspondence course | 109,918 | - | 109,918 | 119,810 | |
| ─────── | ─────── | ─────── | ─────── | ||
| 642,037 | 33,598 | 675,635 | 897,602 | ||
| ═══════ | ═══════ | ═══════ | ═══════ | ||
| Total income | 1,877,173 | 33,598 | 1,910,771 | 2,059,127 | |
| ═══════ | ══════ | ═══════ | ═══════ | ||
| 5 | INCOME FROM TRADING ACTIVITIES | ||||
| 2021 | 2020 | ||||
| £ | £ | ||||
| Royalties received | 451 | 126 | |||
| Café income | 680 | 14,394 | |||
| Other income | 27,736 | 64,483 | |||
| ─────── | ─────── | ||||
| 28,867 | 79,003 | ||||
| ═══════ | ═══════ | ||||
| 6 | INCOME FROM INVESTMENTS | ||||
| 2021 | 2020 | ||||
| £ | £ | ||||
| Interest receivable from bank accounts and short | term deposits | 1,362 | 2,097 | ||
| ═══════ | ═══════ |
17
ANDREW WOMMACK MINISTRIES - EUROPE
NOTES TO THE FINANCIAL STATEMENTS For the year ended 30 June 2021
___________
7 TOTAL EXPENDITURE
| TOTAL EXPENDITURE | ||||
|---|---|---|---|---|
| 2021 | 2020 | |||
| Support | Total | Total | ||
| Direct costs | costs | costs | costs | |
| £ | £ | £ | £ | |
| Costs of raising funds | ||||
| Costs of raising donations income | 135,886 | - | 135,889 | 130,126 |
| ─────── | ─────── | ─────── | ─────── | |
| 135,886 | - | 135,889 | 130,126 | |
| ─────── | ─────── | ─────── | ─────── | |
| Charitable activities | ||||
| Sales | 60,389 | - | 60,389 | 82,609 |
| Charis Bible College Costs | 653,333 | 15,209 | 668,542 | 860,139 |
| Other Evangelical Expenditure | 1,747,504 | 190,205 | 1,937,709 | 1,886,534 |
| Governance costs | 53,459 | - | 53,459 | 53,543 |
| ─────── | ─────── | ─────── | ─────── | |
| 2,514,685 | 205,414 | 2,720,099 | 2,882,825 | |
| ─────── | ─────── | ─────── | ─────── | |
| ─────── | ─────── | ─────── | ─────── | |
| Total expenditure | 2,650,571 | 205,414 | 2,855,985 | 3,012,951 |
| ═══════ | ═══════ | ═══════ | ═══════ | |
| 2021 | 2020 | |||
| £ | £ | |||
| Analysed support costs consist of the following: | ||||
| Administration costs | 68,228 | 96,485 | ||
| Premises costs | 137,186 | 112,719 | ||
| ─────── | ─────── | |||
| 205,414 | 209,204 | |||
| ═══════ | ═══════ | |||
| 2021 | 2020 | |||
| £ | £ | |||
| Other direct costs include: | ||||
| Auditor’s remuneration: | ||||
| - Charity external audit | 15,000 | 15,500 | ||
| - Other costs | 24,570 | 6,520 | ||
| Other support costs include: | ||||
| Depreciation (note 11) | 58,716 | 61,186 | ||
| ═══════ | ═══════ |
18
ANDREW WOMMACK MINISTRIES - EUROPE
NOTES TO THE FINANCIAL STATEMENTS For the year ended 30 June 2021
___________
8 STAFF COSTS
| STAFF COSTS | ||
|---|---|---|
| 2021 | 2020 | |
| £ | £ | |
| Wages & salaries | 1,109,569 | 1,078,298 |
| Social security costs | 78,467 | 83,314 |
| Pension costs | 21,351 | 20,842 |
| ─────── | ─────── | |
| 1,209,387 | 1,182,454 | |
| ═══════ | ═══════ |
No employee earned £60,000 per annum, or more (2020: £nil). Unpaid pension contributions as at 30 June 2021 were £4,139. (2020: £3,963)
The average number of employees during the period, expressed as full time equivalents, was as follows:
| 2021 | 2020 | |
|---|---|---|
| Number | Number | |
| Management | 14 | 13 |
| Administration | 35 | 36 |
| ─────── | ─────── | |
| 49 | 49 | |
| ═══════ | ═══════ |
The average number of full time and part time staff during the year was 41 (2020: 36) and 15 (2020: 22), respectively.
Salary and pension contributions paid to key management personnel were £361,252 and £7,992 respectively (2020 - £354,479 and £7,798).
There were termination payments made to 2 employees in the year totalling £14,018, (2020: £28,624) (2020: 5).
9 TAXATION
The company has no liability to corporation tax for the year ended 30 June 2021.
10 TRUSTEES
Total Trustee expenses reimbursed during the year ended 30 June 2021 were £226 (2020: £3,406) to two Trustees (2020: Two). These relate to guest speaking expenses and phone bills for Trustees. None of the Trustees have been paid any remuneration.
19
ANDREW WOMMACK MINISTRIES - EUROPE
NOTES TO THE FINANCIAL STATEMENTS For the year ended 30 June 2021
___________
11 TANGIBLE FIXED ASSETS
| Computer | Fixtures | |||||
|---|---|---|---|---|---|---|
| Freehold | and other | and | ||||
| Land | buildings | equipment | fittings | Total | ||
| £ | £ | £ | £ | £ | ||
| Cost | ||||||
| At 1 July 2020 | 300,000 | 961,154 | 265,479 | 97,608 | 1,624,241 | |
| Additions | - | - | 23,361 | 2,200 | 25,561 | |
| Asset transfer | (37,434) | 37,434 | - | |||
| Disposals | - | - | (97,488) | - | 97,488 | |
| ─────── | ─────── | ─────── | ─────── | ─────── | ||
| At 30 June 2021 | 300,000 | 961,154 | 153,918 | 137,242 | 1,552,314 | |
| ═══════ | ═══════ | ═══════ | ═══════ | ═══════ | ||
| Depreciation | ||||||
| At 1 July 2020 | - | 203,682 | 232,579 | 83,086 | 519,347 | |
| Charge for the year | - | 34,676 | 19,261 | 4,777 | 58,716 | |
| Depreciation transfer | (36,508) | 36,508 | - | |||
| On disposals | - | - | (96,292) | - | (96,292) | |
| ─────── | ─────── | ─────── | ─────── | ─────── | ||
| At 30 June 2021 | - | 238,358 | 119,040 | 124,371 | 481,769 | |
| ═══════ | ═══════ | ═══════ | ═══════ | ═══════ | ||
| Net book value | ||||||
| At 30 June 2021 | 300,000 | 722,796 | 34,878 | 12,871 | 1,070,545 | |
| ═══════ | ═══════ | ═══════ | ═══════ | ═══════ | ||
| At 30 June 2020 | 300,000 | 757,472 | 32,900 | 14,522 | 1,104,894 | |
| ═══════ | ═══════ | ═══════ | ═══════ | ═══════ | ||
| 12 | STOCKS | |||||
| 2021 | 2020 | |||||
| £ | £ | |||||
| Finished goods | 60,891 | 79,911 | ||||
| ═══════ | ═══════ | |||||
| 13 | DEBTORS | |||||
| 2021 | 2020 | |||||
| £ | £ | |||||
| Trade debtors | 22,674 | 52,529 | ||||
| Other debtors | 17,144 | 23,642 | ||||
| Prepayments | 36,943 | 75,018 | ||||
| ─────── | ─────── | |||||
| 76,760 | 151,189 | |||||
| ═══════ | ═══════ |
20
ANDREW WOMMACK MINISTRIES - EUROPE
NOTES TO THE FINANCIAL STATEMENTS For the year ended 30 June 2021
___________
14 CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
| CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
||
|---|---|---|
| 2021 | 2020 | |
| £ | £ | |
| Trade creditors | 52,958 | 83,752 |
| Other creditors | 159 | 6,276 |
| Accruals | 164,910 | 385,705 |
| Other taxes and social security | 24,310 | 22,056 |
| Deferred income | 7,369 | 91,597 |
| ─────── | ─────── | |
| 249,706 | 589,386 | |
| ═══════ | ═══════ |
15 UNRESTRICTED FUNDS
At 30 June 2021 the unrestricted funds of the Charity totalled £1,659,884 (2020: £1,465,702) of which £1,070,545 is held as designated fixed assets (2020: £1,104,894), leaving free reserves of £589,339 (2020 of £360,808).
16 RESTRICTED FUNDS
The movements on the restricted funds of the charity were as follows:
| Balance at | Balance at | |||
|---|---|---|---|---|
| 1 July | 30 June | |||
| 2020 | Income | Expenditure | 2021 | |
| £ | £ | £ | £ | |
| Charis Bible College Scholarship | 2,380 | 4,835 | (1,069) | 6,146 |
| Charis Dumfries Mission | 835 | 5,841 | - | 6,676 |
| Charis Walsall Mission | 60,923 | 5,251 | - | 66,174 |
| Charis Belfast Mission | 11,515 | 7,884 | - | 19,399 |
| World Outreach | 113,484 | 92,392 | (100,320) | 105,556 |
| Translation Fund | 13,062 | 10,877 | (18,856) | 5,083 |
| UK Building Fund (Building) | 102,144 | 59,807 | (70,846) | 91,105 |
| USA Foundation Builder (Building) | - | 54,746 | (54,746) | - |
| God TV | 2,902 | 16,792 | (19,578) | 116 |
| Uganda Outreach | 40 | 10,553 | (10,553) | 40 |
| Other Restricted Donations | 1,231 | - | - | 1,231 |
| Rest Fund | - | 5,800 | (5,800) | - |
| US Grace Partnership Fund | - | 17,743 | (17,743) | - |
| Sturman Building project Fund | - | 2,317 | (2,317) | - |
| Woodland Park Outbuildings Fund | - | 31,032 | (31,032) | - |
| Charis Exeter Mission | 550 | 20 | - | 570 |
| Charis Exeter Scholarship | 2,980 | 6,330 | (2,358) | 6,952 |
| World Outreach French Region Fund | 5,294 | 3,666 | (8,829) | 131 |
| Charis Dumfries Scholarship | 22 | 1,900 | (1,152) | 770 |
| Charis Dewsbury Scholarship | 1,949 | 1,517 | (113) | 3,353 |
| Charis Dewsbury Mission | 13,428 | 20 | (161) | 13,287 |
| ─────── | ─────── | ─────── | ─────── | |
| 332,739 | 339,323 | (345,473) | 326,589 | |
| ═══════ | ═══════ | ═══════ | ═══════ |
21
ANDREW WOMMACK MINISTRIES - EUROPE
NOTES TO THE FINANCIAL STATEMENTS For the year ended 30 June 2021
16 RESTRICTED FUNDS (continued)
Mission Funds
The Charis Bible College Mission funds represent monies received in support of student mission trips.
World Outreach Fund
The World Outreach fund represent monies earmarked for the World Outreach project which funds Charis extension colleges, including translation projects and conferences.
The Translation Fund
The Translation fund represents monies earmarked for general translations.
UK Building Fund (Building)
UK Building Fund (Building) represents monies raised in support of the purchase and refurbishment of the charity’s freehold premises.
Charis Bible College Scholarship Fund
The Charis Bible College Scholarship fund is for the funding of Bible College Scholarships.
USA Foundation Builder (Building) Fund
The USA Foundation Builder (Building) fund represents monies raised in support of the cost of the expansion of the Charis Bible College Woodland Park, Colorado facility.
God TV Fund
The God TV fund represents monies donated to finance broadcasting on the God Channel.
Uganda Outreach Fund
The Uganda Outreach fund represents monies raised for general outreach in Uganda.
Grace and Faith Appeal Fund
An appeal launched to cover basic costings of the Grace and Faith conference.
Rest Fund
The Rest Fund represents monies donated by partners that allows and enables directors of Andrew Wommack Ministries Offices worldwide and missionaries to take time off to recuperate when needed.
US Grace Partnership Fund
The US Grace partnership Fund represents donations that are received by the UK office for the general expenses of the US offices.
Expansion Project (Sturman Project)
This fund represents monies donated for the purchase of the Sturman property adjacent to the AWM Sanctuary property in Woodland Park, Colorado.
World Outreach French Region Fund
These funds are for Outreach work in the French speaking world.
Charis Dumfries Scholarship
These funds are for tuition fees for students with financial hardships.
Charis Dewsbury Scholarship
Similarly, these are to help students clear their student fees owing due to financial hardships.
Charis Dewsbury Mission
These are for mission expenses, which is part of the student programme.
22
ANDREW WOMMACK MINISTRIES - EUROPE
NOTES TO THE FINANCIAL STATEMENTS For the year ended 30 June 2021
___________
17 ANALYSIS OF NET ASSETS BETWEEN FUNDS
17 ANALYSIS OF NET ASSETS BETWEEN FUNDS |
||||
|---|---|---|---|---|
| General | Designated | Restricted | Total | |
| funds | funds | funds | funds | |
| £ | £ | £ | £ | |
| Fund balances at 30 June 2021 are represented by: | ||||
| Tangible fixed assets | - | 1,070,544 | - | 1,070,544 |
| Current assets | 839,046 | - | 326,589 | 1,165,635 |
| Creditors: amounts falling due within one year | (249,707) | - | - | (249,707) |
| - | ||||
| ─────── | ─────── | ─────── | ─────── | |
| Total net assets at 30 June 2021 | 589,339 | 1,070,544 | 326,589 | 1,1986,472 |
| ═══════ | ═══════ | ═══════ | ═══════ |
18 RELATED PARTY TRANSACTIONS
Name of related party
Andrew Wommack Ministries Incorporated.
Nature of relationship
3 directors of Andrew Wommack Ministries – Europe are also directors of Andrew Wommack Ministries Incorporated - Andrew Wommack, Jamie Wommack and Billy Epperhart.
Transactions and balances
During the year AWME transferred net funds to AWMI of £791,733 (2020: £533,907), made sales to AWMI totalling £7,164 (2020: £324) and AWME had purchases of £20,238. The transfer of funds arises because of donations and grants initially received by AWME, but which relate to specific charitable funds managed within AWMI. As of 30th June 2021, £85,652 (2020: £247,485 was due from) was due to AWMI.
Name of related party
Andrew Wommack Ministries South Africa.
Nature of relationship
3 directors of Andrew Wommack Ministries – Europe are also directors of Andrew Wommack Ministries South Africa, to include Jamie Wommack, Billy Epperhart and Mike Pickett.
Transactions and balances
During the year nothing was invoiced to AWM South Africa (2020: £23,120). There were no purchases from AWME South Africa during the year. As at 30[th] June 2021 there was £1,512 (2020: £1,512) outstanding from AWME South Africa.
Name of related party
Andrew Wommack Ministries Germany.
Nature of relationship
4 directors of Andrew Wommack Ministries – Europe are also directors of Andrew Wommack Ministries Germany, to include Jamie Wommack, Billy Epperhart, Michael Pickett and Klaus-Dieter Gruber. Transactions and balances
During the year AWME made sales of books, CD’s, used computer and study guides to AWM Germany of £32,366 (2020: £27,751). AWME made purchases totalling nil (2020: nil). As of 30[th] June 2021, no balance was due to or from Germany (2020: £3,655).
23
ANDREW WOMMACK MINISTRIES - EUROPE
NOTES TO THE FINANCIAL STATEMENTS For the year ended 30 June 2021
___________
Name of related party
Andrew Wommack Ministries Uganda.
Nature of relationship
2 directors of Andrew Wommack Ministries – Europe are also directors of Andrew Wommack Ministries Uganda, to include Michael Pickett and Billy Epperhart.
Transactions and balances
There were no transactions during the year or prior year. As at 30[th] June 2021 and 30[th] June 2020 no balances were due to or from Andrew Wommack Ministries Uganda.
Name of related party
Andrew Wommack Ministries Canada.
Nature of relationship
3 directors of Andrew Wommack Ministries – Europe are also directors of Andrew Wommack Ministries Canada, to include Jamie Wommack, Billy Epperhart and Mike Pickett.
Transactions and balances
During the year AWME made sales of books, CD’S, study guides and invoiced a translation work to AWM Canada for £16,639 (2020: £41,306). There were no purchases from AWM Canada during the period. As at 30[th] June 2021 there is £97 (2020: £93) outstanding from AWME Canada.
Name of related party
Andrew Wommack Ministries Australia.
Nature of relationship
2 director of Andrew Wommack Ministries – Europe are also a director of Andrew Wommack Ministries Australia, to include Billy Epperhart & Michael Pickett.
Transactions and balances
During the year AWME made purchases of £28,478 (2020: £25,383) and made sales of £3,383 (2020: £17,570) to AWM Australia. As of 30th June 2021, £2,260 (2020: £5,647) was due from Australia.
Name of related party
Andrew Wommack Ministries Netherlands.
Nature of relationship
3 Directors of Andrew Wommack Ministries – Europe were also directors of Andrew Wommack Ministries Netherlands – Michael Pickett, Billy Epperhart & Klaus-Dieter Gruber. Transactions and balances
There were sales of £73 (2020: £83) to the Netherlands during the year and and £nil in purchases (2020: £271). As of 30th June 2021, £4,372 (2020: £4,317) was due from AWM Netherlands.
Name of related party
Andrew Wommack Ministries Hong Kong
Nature of relationship
2 Directors of Andrew Wommack Ministries – Europe were also directors of Andrew Wommack Ministries Hong Kong – Michael Pickett & Billy Epperhart. Transactions and balances
During the year AWME made no sales (£2020: £196) to AWM Hong Kong. There were no purchases from AWM Hong Kong (2020: £341) . As of 30[th] June 2021, £196 (2020: £196) was due from AWM Hong Kong.
Name of Related Party
Andrew Wommack Ministries France.
Nature of Relationship
4 Director of Andrew Wommack Ministries-Europe, were also a director for Andrew Wommack Ministries France – Klaus Dieter-Gruber, Billy Epperhart, Michael Pickett & Jamie Wommack.
Transactions and Balances
During the year we had funds transfers of £8,828 and there were sales totalling £1,012. There were no purchases from France during the year. As at 30th June 21, a balance of £207 was due from AWM France.
24
ANDREW WOMMACK MINISTRIES - EUROPE
NOTES TO THE FINANCIAL STATEMENTS For the year ended 30 June 2021
___________
Name of related party
Hanna Alargent (nee H Gruber)
Nature of relationship
Related to a trustee
Transactions and balances
H Alargent is a consultant for the UK ministry. During the year AWME paid her £20,794 (2020: £5,430) in consultancy fees. At year end there was nothing owed to her.
19 Financial Commitments
The charity had the following operating lease commitments based on minimum lease payments:
Land and Buildings
| 2021 | 2020 | |
|---|---|---|
| £ | £ | |
| Within one year | 23,734 | 10,764 |
| Within two to five years | - | - |
| In over five years | - | - |
| ─────── | ─────── | |
| 23,734 | 10,764 | |
| ═══════ | ═══════ |
20 Reconciliation of net movement in funds to net cashflow from operating activities
| 2021 | 2020 | |
|---|---|---|
| £ | £ | |
| Net income / (expenditure) for the year | ||
| (as per Statement of Financial Activities) | 188,032 | 252,727 |
| Adjustment for: | ||
| Depreciation | 58,716 | 62,594 |
| Loss on disposal of tangible assets | 1,195 | 5,351 |
| Decrease / (increase) in stocks | 19,020 | 4,905 |
| (Increase) / decrease in debtors | 74,429 | (11,257) |
| Increase in creditors | (339,679) | 40,700 |
| ─────── | ─────── | |
| Net cash provided by / (used in) operating activities | 1,713 | 355,020 |
| ════════ | ═══════ |
25