Registered number: 06994834 Charity number: 1134421
WORLD MISSION AGENCY - WINNERS CHAPEL INTERNATIONAL
(A company limited by guarantee)
TRUSTEES' REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020
WORLD MISSION AGENCY - WINNERS CHAPEL INTERNATIONAL (A company limited by guarantee)
CONTENTS
| Page | |
|---|---|
| Reference and administrative details of the Charity, its Trustees and advisers | 1 - 2 |
| Chairman's statement | 3 - 5 |
| Trustees' report | 6 - 13 |
| Independent auditors' report on the financial statements | 14 - 17 |
| Statement of financial activities | 18 |
| Balance sheet | 19 |
| Statement of cash flows | 20 |
| Notes to the financial statements | 21 - 39 |
WORLD MISSION AGENCY - WINNERS CHAPEL INTERNATIONAL
(A company limited by guarantee)
REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 DECEMBER 2020
Trustees
Mr Enoch Akame, Chairman (appointed 13 June 2021) Miss Bethel Cynthia Alloyda, Secretary (appointed 13 June 2021) Mr Adebayo Arowolo (resigned 13 June 2021) Mr Adekunle Adeniyi Benjamin, Treasurer Miss Oghenetega Elizabeth Edoja - Mr Ajiri Oghene Ewomazino Esalomi Mr Ayi Asuquo Iboh (appointed 13 June 2021) Mr Charles Lwanga Kijjambu (resigned 13 June 2021) Mr Michael Douglas Marsh Mr Olajide Sunday Obarotimi (appointed 13 June 2021) Dr Olubunmi Ademola Olorunfemi (appointed 13 June 2021) Dr Olumuyiwa John Olumoroti (resigned 13 June 2021) Mr Ayodeji Tokunbo Oni (resigned 13 June 2021) Mr Charles Omo Usiosefe (resigned 13 June 2021)
Company Registered Number
06994834
Charity Registered Number
1134421
Registered Office
1 Churchill Close Green Street Green Road Dartford Kent DA1 1QE
Company Secretary
Miss Bethel Cynthia Alloyda
Independent Auditors
Goodman Jones LLP 29/30 Fitzroy Square London W1T 6LQ
Bankers
HSBC 74 Goswell Road Clerkenwell London EC1V 7DA
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WORLD MISSION AGENCY - WINNERS CHAPEL INTERNATIONAL (A company limited by guarantee)
REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY, ITS TRUSTEES AND ADVISERS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020
Solicitors
Wellers Tenison House Tweedy Road Bromley Kent BR1 3NF
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WORLD MISSION AGENCY - WINNERS CHAPEL INTERNATIONAL IA company limited by guarantee) CHAIRMAN'S STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2020 -4 WINNERS CHAPEL ENGLAND /" J'N: COVID-19 SUPPORT £127,000 Donations to NHS Trusts, Charilies and Food Banks 1200+ Diroci Ileneficiai'ies (rom our covid-19 projects 400+ voIuDteer hours towards cYJvid-19 reliel projects partncrship arrangements with local councils and organisalions Il 106 average ii'eekli, allendance al inleraclii 1114iagrJm so%siong for aduiis 100+ primary school children attending our weekly online classrooms Page 3
WORLD MISSION AGENCY - WINNERS CHAPEL INTERNATIONAL (A company limited by guarantee)
CHAIRMAN'S STATEMENT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020
It is my great pleasure and honour to write the Chairman’s Statement for the 2020 Annual Report as the Chairman of the Board of Trustees of the World Mission Agency-Winners Chapel International (WMA-WCI) England & Wales.
Our covenant theme for the year was declared prophetically as “Our Year of Breaking Limits”. This is because as children of God, we are ordained to break limits in this world by the power of God almighty through the help of the Holy Spirit.
The year started with our 21 days of fasting and prayers to prepare ourselves spiritually for the year ahead. Shortly after that, the news of COVID-19 started spreading around the world and subsequently the full force of the pandemic hit UK.
When the government announced a lockdown in March 2020, welfare of members and staff was utmost in the minds of the Board of Trustees. Local Winners Chapel congregations could no longer gather for services and the social interaction they cherished flew out of the windows. Some of our churches already streamed services online, so they continued uninterrupted and other meetings done online.
It was easy to continue with the live broadcast of our main services but we have to adapt quickly to moving all other meetings to online platforms including setting up staff working tools to enable them work from home. The transition to online was hugely successful due to our proactive plans, investments in our IT infrastructure and the tireless professional teamwork of the church workforce.
Prior to Covid-19, members with welfare or counselling needs would receive support after church services. But, the church now had to figure out how to support them remotely. Furthermore, the pandemic significantly increased the number of people who needed support. People in self-employment or service-related jobs (like hospitality, childcare and retail) suddenly were left without income. WMA-WCI’s well-established grassroots neighbourhood groups, Winners Satellite Fellowships (WSF), played a major role in getting support to those who needed them within the same locality. The WSF framework has an embedded Welfare Committee that provides support with food, funds for medication, rent and bereavement. £474,561 was spent on supporting members with welfare needs during the year.
Due to the robust welfare and community support system, we already have, we were able to expand our operations robustly and effectively to reach out to more members and to our community. Everyone who turned up for help were supported.
With our well-established Community Development Committee, the church reached out to members of the community across England and Wales, providing food vouchers for needy families and financially supporting other charities that are reaching out to various people in the communities due to the biting adverse impact of covid-19.
The charity robustly funded the move to protect her members and members of the public by adhering fully to the government’s guidelines and providing adequate covid-19 personal protective equipment for use within our church premises.
Over £600,000 was spent, during COVID-19 lockdown, between March and December 2020 for members’ welfare, community development activities and other Charities :
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WORLD MISSION AGENCY - WINNERS CHAPEL INTERNATIONAL (A company limited by guarantee)
CHAIRMAN'S STATEMENT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020
2020 as we all know was an unprecedented year for individuals and organisations; WMA-WCI was not an exception. The charity income reduced; meet & greet, physical interaction, interactive fellowship became impossible but our strong focus on the charity’s mission and objectives helped us to continue to preach the gospel of Jesus Christ to wider audience via online, expanded our charitable activities making us a source of hope and help to the needy within and outside the church.
The charity is sure to continue to support her members and the community as the nation hopefully move into recovery and beyond.
I want to use this opportunity to appreciate members of the Board of Trustees, the pastors, staff, statutory body members, volunteer workforce and the entire members of WMA-WCI for the resilient, commitment and dedication we have all shown.
We look forward to better 2021 as a year of recovery.
Pastor Enoch Akame Chairman Board of Trustees WMA-WCI England & Wales
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WORLD MISSION AGENCY - WINNERS CHAPEL INTERNATIONAL
(A company limited by guarantee)
TRUSTEES' REPORT FOR THE YEAR ENDED 31 DECEMBER 2020
The Trustees present their annual report together with the audited financial statements of the Charity for the year 1 January 2020 to 31 December 2020. The Annual report serves the purposes of both a Trustees' report and a directors' report under company law. The Trustees confirm that the Annual report and financial statements of the charitable company comply with the current statutory requirements, the requirements of the charitable company's governing document and the provisions of the Statement of Recommended Practice (SORP) applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) (effective 1 January 2019).
Objectives and activities
a. Policies and objectives
The primary objective of the Charity is the advancement of the Christian faith. This is achieved through our church services, the advancement of education, and the relief of those in need by reason of age, health, disability, financial hardship or other disadvantage; as well as the advancement of such other charitable purposes as the Trustees shall from time to time decide.
In setting objectives and planning for activities, the Trustees have given due consideration to general guidance published by the Charity Commission relating to public benefit, including the guidance 'Public benefit: running a charity (PB2)'.
b. Our Services
Our services are designed to offer a unique spiritual atmosphere of peace and joy as a result of the presence of God. Our services are unique in effect as every aspect of the services is focused in releasing God's blessing upon His people. Our services are destiny-molding services which take place every Sunday and Wednesday, where all attendees are taught how to win over the challenges of life and provoke divine intervention as well as the blessing of God in their lives. The services are a medley of praise and worship, corporate intercessory prayer, teaching and bold declarations based on the infallible word of God. Recognising the different needs of our church members, separate services are held for Children, Teenagers and people with Special Needs which run concurrently with the adult church services. We also have a Youth & Singles Ministry which caters for the needs of young people.
c. Other Activities
During the year, we held a series of community based events and evangelical outreaches, including the humanitarian services to impact people both within and outside the congregation. We delivered the Word of Faith Bible Institute, a leadership program that trained hundreds of students in faith and leadership. We may need to increase our spending on CDC during the year.
d. Volunteers
During the year, we had the support of about 210 active volunteers contributing numerous hours supporting administration, estate management, finance, member follow up, and the Word of Faith Bible Institute. Several hundreds of other volunteers contributed towards evangelism, the efficient running of church services and support in other church events.
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WORLD MISSION AGENCY - WINNERS CHAPEL INTERNATIONAL (A company limited by guarantee)
TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020
Objectives and activities (continued)
e. Main activities undertaken to further the Charity's purposes for the public benefit
In line with the requirements of the Charity Commission under the Charities Act 2011, Charities are required to demonstrate that their aims are for public benefit. The Board of Trustees of World Mission Agency - Winners Chapel International is confident that our aims and all the activities of the Charity fully meet the public benefit test. The Charity exists for the benefit of the public and opens its services and activities to all. Furthermore, the activities of the Charity also:
a) Support less privileged and needy people through gifts in kind and, where appropriate, financial assistance; b) Give financial support to other Charities who share common values and aims; and c) Respond to social needs, where applicable.
In the past 5 years, we have spent over £1m on charitable activities across some of our church networks through Community Development Committee, which focuses on providing support to our immediate communities.
How we do it:
Our Charity believes in community impact and we use resources within our control to reach out to the community and public. Various church volunteers carry out periodic public outreaches to propagate the Christian faith and share the message of Christ to people in the community. This is followed up by invitation to attend the church as the church always opens its doors to members of the public. Services are conducted to meet the spiritual, emotional, and core needs of members of the public. Words of motivation and encouragements are shared to the attendees in all services. Past services are archived on the church's website for the public to access and listen to at their convenience. Also, books and CDs are available at discounted prices for the public.
The church runs free introductory classes through 'Winning Foundation School' for all new members coming into the church towards their individual empowerment. This ensures their all-round development. Interpreters for various languages are engaged to interpret our services to attendees whose first language is not English.
Resources and Benefits to Wider Society:
The Charity provides welfare support to members and to the public, being the key parts of our public benefits activities. The support for members are either in terms of finance, advisory, counselling, guidance, and other means of empowerments; depending on the circumstances of each welfare applicant. Food items are provided for anyone requiring food with no questions asked. Some members were supported financially to pay for their house rent, upkeep or other means of financial support.
For public support, our focus is to eradicate poverty, promote inclusion and diversity and spiritual growth. We do all these through our Community Development Committee (CDC) which is charged with representing the Charity to identify areas to support the public with the most beneficial effect and reach to people that require help. These support are either done to individual persons or through organisations like other charities, hospitals, homes etc.
During the year, we operated Food Banks at Birmingham, Dartford, Liverpool and Manchester churches all year round, providing food for the needy. We also financially supported other charities spending a total of £369,496 during the year.
World Mission Agency - Winners Chapel International, where deemed necessary, pays for training needs and obtains necessary certification where required. The Charity also provides counselling for various categories of people based on their needs.
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WORLD MISSION AGENCY - WINNERS CHAPEL INTERNATIONAL (A company limited by guarantee)
TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020
Objectives and activities (continued)
Pre and post marital counselling are provided respectively for intending and married couples. The pre marital counselling involves some degree of mentoring, taking the couples through various sessions to prepare them for the marital journey ahead. This is in line with the church's view that a healthy family is the backbone of a healthy society. Hence, World Mission Agency - Winners Chapel International remained committed to investing in families and where necessary, post marital counselling is also provided.
As a charity, we continued to execute structured programmes for youth thereby building them to become responsible adults. A separate weekly service is provided for youths and various events are organised and executed by them with adult leading. Some of these events are conducted at key public places.
During the year, the Charity visited Prisons and Hospitals. This is to give hope and support to the people in these places. This is a continuous year round programme contained to a key part of our public benefit program.
Overall, World Mission Agency - Winners Chapel International, as a church, remained committed to giving back to the community using every available opportunity. During the year, donations and non-financial supports were made to various local groups as identified by the mission Community Development Committee (CDC).
Achievements and performance
a. Achievement and Performance
The Charity carried out numerous activities in the year in accordance with its objects and plans outlined in the previous year. These included Christian outreach, training, and conferences including the Annual Convention. There were also a number of welfare programs and partnering with the local community and churches. Highlights of the key achievements and performance in the year are provided in the Chairman's Report on page 1.
b. Review of Financial Position
The financial statements cover the operations of World Mission Agency - Winners Chapel International in England & Wales.
For the year ended 31 December 2020, the Statement of Financial Activities shows total incoming resources of £8,938,724 (2019: £10,397,172). This was spent mainly on charitable activities and charitable activity expenditure totaled £7,203,240 (2019: £8,159,041). Total expenditure amounted to £9,753,240 (2019: £8,159,041). We closed the year with net income resources before other expenditure of £1,735,484 and a deficit net movement on funds of £814,516 (2019: surplus £2,238,131).
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WORLD MISSION AGENCY - WINNERS CHAPEL INTERNATIONAL (A company limited by guarantee)
TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020
Achievements and performance (continued)
c. Principal Funding Sources
The financial statements cover the operations of World Mission Agency - Winners Chapel International in England & Wales.
Individual donations and gifts continued to be the main sources of income. Donations and Gift Aid credits including fees from the Word of Faith Bible Institute and other sundries amounted to £8,080,220 (2019: £10,224,460). Other incoming resources were from the sale of books, tapes, bank interest and funds for Mission Expansion. The total of these amounted to £858,504 (2019: £172,712) for the year. The majority of voluntary income is unrestricted, but some donations are given for specific purposes and these totaled £9,845 for the year (2019: £45,965). Charitable expenditure has also increased with the growth of the church as the key departments expand to cater for the growth in visitors and members.
d. Investment Policy
The Trustees have the powers to invest Charity's funds in any way they see fit. The Charity's cash reserves are held in deposit bank accounts in anticipation of property acquisitions and in line with the Charity's cautious attitude towards risk.
Financial review
a. Going concern
After making appropriate enquiries, the Directors have a reasonable expectation that the Charity has adequate resources to continue in operational existence for the foreseeable future. The Charity's responded adequately to the effect of Covid-19 by reviewing and reducing all expenditure in line with income, i.e. our income level was 84% achieved to budget whilst our expenditure was 73% to budget. Given the Charity's current cash reserve, in full consideration of donations refunded (note 8), the Trustee's are of the opinion that the Charity can continue as a going concern; hence, it continues to adopt the going concern basis in preparing its financial statements. Further details regarding the adoption of the going concern basis can be found in the statement of accounting policies.
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WORLD MISSION AGENCY - WINNERS CHAPEL INTERNATIONAL (A company limited by guarantee)
TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020
b. Reserves policy
The Trustees have considered that, given the nature of the Charity to establish and operate churches within England & Wales funded by the tithes and offerings of its members, and given the growth in stations and members, the risk of there being a sudden and total cessation of income is extremely remote. The Trustees are, however, mindful of the fact that the Charity needs to pay its bills as they fall due. With this in mind, the Trustees have calculated that the core expenses of the Charity (principally salaries of full time staff and premises costs equate to approximately £500,000 a month. The Trustees will, therefore, plan to ensure that there will always remain at least £2.0m of unrestricted income in the Charity's bank accounts, equivalent to core costs for four months, to meet such expenditure.
The Trustees continue to designate funds towards the acquisition of properties to conduct church services at a number of locations. It is estimated that this will be carried out as part of a rolling plan over the next 3-5 years.
There are also designated funds of approximately 2% of total income set aside for ongoing humanitarian activities, as well as sums agreed to be donated to Living Faith Church Worldwide, a church of which WMA WCI is a branch.
With this in mind, the Charity's free reserves (funds not tied up in fixed assets or designated) stood at £7.9m (2019: £8.6m) at the balance sheet date.
c. Fundraising
The Charity does not currently generate funds from the use professional fundraisers.
Structure, governance and management
a. Constitution
World Mission Agency - Winners Chapel International is registered as a charitable company limited by guarantee and was set up by a Memorandum of Association on 22/02/2010.
The operations of the Charity are administered by a governing body of unpaid members, acting as trustees, and management committees who serve alongside paid executives. The Resident Pastor serves as the Chief Executive Officer responsible to the governing body for the overall management of the church and for ensuring that all policies are carried out. The Board of Trustees also act as Directors of the Charity for the purposes of company law.
b. Recruitment and Appointment of New Trustees
Trustees and Members of Committees are appointed by the Church Ministerial Board (CMB) using a basic skills survey method. Due consideration is given to what is needed to make the Board and Committees as effective as can be. Also, care is taken to ensure the Board has the right mix of skills and experience to discharge its duties and ensure effective governance and management. Trustees serve a term of two years which is renewable at the discretion of the Board. However, only in exceptional cases will trustees be asked to stay on for more than four years.
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WORLD MISSION AGENCY - WINNERS CHAPEL INTERNATIONAL (A company limited by guarantee)
TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020
Structure, governance and management (continued)
c. Induction and Training for Trustees
A Trustee induction is organised for new trustees to familiarise them with the Memorandum & Articles of Association, their legal obligations, roles and responsibilities under Charity Commission and company law, and World Mission Agency - Winners Chapel International risk management processes, policies, and procedures. Continuous formal training is also organised for the Trustees to equip them with the knowledge and required skills for their role. Trustees are also made aware of the sources of information, and guidance on best practice to enable them to be effective in their role.
d. Organisational structure
The board delegates power of decision making to the following committees:
Church Ministerial Board (CMB) Church Office Management Commitee (COMC) Project Advisory Committee (PAC) National Community Development Committee (NCDC) Local Church Council (LCC) Financial Management Committee (FMC)
Each committee has clear terms of reference and defined roles and responsibilities. They advise the Board of Trustees, which approves major decisions and has overall responsibility for all World Mission Agency - Winners Chapel International activities. The Board and all committees meet at least once a month and the committees report monthly progress to the Board.
The Board is supported by the Pastorate in the proclamation of the Gospel of Jesus Christ, our Primary Objective, through the Praise and Worship services, Evangelism, Counselling, Word of Faith Bible Institute etc. The Pastorate is assisted by the Deaconary, who head up the various departments. The Church Ministerial Board (CMB) co ordinates the spiritual oversight of our Mission.
The running of day to day operations is delegated to the executive management team led by the Resident Pastor. Their remuneration is set by the Trustees by benchmarking against other similar charities and in consultation with HR professionals.
e. Related party relationships
The World Mission Agency - Winners Chapel International has Trustees in common with the World Mission Agency (Company number: 04088588 and Registered charity number: 1085902). This entity is dormant.
f. Risk management
Trustees take seriously their responsibility to assess and manage the major risks that the Charity faces and therefore, reviews all risk twice a year. A formal risk management process is in place to ensure risks are identified and appropriate mitigating actions are taken. This is captured in our Risk Management Policy. In addition, the Charity operates a comprehensive annual planning and budgeting process which is approved by the Board of Trustees and reviewed mid-year. Detailed financial monitoring takes place monthly and is carried out by the Executive Team as well as the Financial Management Committee (FMC). On a monthly basis, administrative and financial reports are presented to the Board of Trustees (BOT) to ensure prudent financial management is observed at all times and all non-financial risks (e.g. safeguarding) are well managed.
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WORLD MISSION AGENCY - WINNERS CHAPEL INTERNATIONAL (A company limited by guarantee)
TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020
Plans for future periods
In implementing the Charity's plans for church planting, Evangelism, and Mission work in England & Wales, the Trustees have determined that within the next 3 years, the estimated cost of implementing its plans is likely to be in excess of £12m including covering the acquisition costs of permanent places of worship for a number of our churches in England & Wales. To this end, we have designated £2.4m of the Charity's cash reserves in order to meet this expenditure when it is incurred. The Trustees have resolved to review the Charity's cash balances in line with its projected growth on an annual basis.
The Charity plans to continue the activities outlined above in the forthcoming years. It will continue seeking ways and means of working in collaboration with other welfare organisations in the various local communities in which it operates. The aims and objectives of the Charity remain unchanged.
Impact of Covid-19 on the Charity's activities
In accordance with government direction, all of the Charity's churches and offices were closed to the public and members of the church from 20 March 2020 until September 2020 when it was partially opened according to numbers allowed by the government, with the rule of mask-wearing and social distancing. Our Services were delivered online all through the lockdown period and partial opening.
With the government's lockdown restrictions in place, our churches were not able to generate income as usual as only online giving was available to the public. On the other hand, our expenditure also went down due to fewer activities at our church premises. However, we used the opportunity to increase the welfare and other financial supports to members that lost their jobs and ensuring our elders are well taken care of.
The Charity continues to pay all staff salary at the salary payment date, and no one was placed on leave without pay.
Refund of donations
On 4 August 2021 a claim was made against the charity by the liquidators of a donor company seeking repayment under the Insolvency Act 1986. The parties reached a settlement in pursuant to a deed dated 3 March 2022. Further details are in note 8 of the account.
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WORLD MISSION AGENCY - WINNERS CHAPEL INTERNATIONAL (A company limited by guarantee)
TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020
Statement of Trustees' responsibilities
The Trustees (who are also the directors of the Charity for the purposes of company law) are responsible for preparing the Trustees' report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
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 Charity and of its incoming resources and application of resources, including its income and expenditure, for that period. In preparing these financial statements, the Trustees are required to:
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select suitable accounting policies and then apply them consistently;
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observe the methods and principles of the Charities SORP (FRS 102);
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make judgments and accounting estimates that are reasonable and prudent;
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state whether applicable UK Accounting Standards (FRS 102) have been followed, subject to any material departures disclosed and explained in the financial statements;
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prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Charity will continue in business.
The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the Charity's transactions and disclose with reasonable accuracy at any time the financial position of the Charity 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 Charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Disclosure of information to auditors
Each of the persons who are Trustees at the time when this Trustees' report is approved has confirmed that:
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so far as that Trustee is aware, there is no relevant audit information of which the charity's auditors are unaware, and
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that Trustee has taken all the steps that ought to have been taken as a Trustee in order to be aware of any relevant audit information and to establish that the charity's auditors are aware of that information.
Auditors
The auditors, Goodman Jones LLP, have indicated their willingness to continue in office. The designated Trustees will propose a motion reappointing the auditors at a meeting of the Trustees.
Approved by order of the members of the board of Trustees and signed on their behalf by:
................................................
Mr Enoch Akame (Chair of Trustees) Date: 25-03-22
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WORLD MISSION AGENCY - WINNERS CHAPEL INTERNATIONAL (A company limited by guarantee)
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF WORLD MISSION AGENCY - WINNERS CHAPEL INTERNATIONAL
Opinion
We have audited the financial statements of World Mission Agency - Winners Chapel International (the 'charity') for the year ended 31 December 2020 which comprise the Statement of financial activities, the Balance sheet, the Statement of cash flows and the related notes, 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 Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
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give a true and fair view of the state of the charitable company's affairs as at 31 December 2020 and of its incoming resources and application of resources, including 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.
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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council'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 charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the Trustees with respect to going concern are described in the relevant sections of this report.
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WORLD MISSION AGENCY - WINNERS CHAPEL INTERNATIONAL (A company limited by guarantee)
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF WORLD MISSION AGENCY - WINNERS CHAPEL INTERNATIONAL (CONTINUED)
Other information
The other information comprises the information included in the Annual report other than the financial statements and our Auditors' report thereon. The Trustees are responsible for the other information contained within the Annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. 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.
Opinion on other matters prescribed by the Companies Act 2006
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 financial year for which the financial statements are prepared is consistent with the financial statements.
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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 the light of our knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees' report.
We have nothing to report in respect of the following matters in relation to which Companies Act 2006 requires us to report to you if, in our opinion:
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adequate 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 specified by law are not made; or
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we have not received all the information and explanations we require for our audit.
Responsibilities of trustees
As explained more fully in the Trustees' responsibilities statement, 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 charitable company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.
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WORLD MISSION AGENCY - WINNERS CHAPEL INTERNATIONAL (A company limited by guarantee)
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF WORLD MISSION AGENCY - WINNERS CHAPEL INTERNATIONAL (CONTINUED)
Auditors' responsibilities for the audit of the financial statements
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 Auditors' 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 these 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. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
Based on our understanding of the charity, we identified that the principal risks of non-compliance with laws and regulations related to charity sector regulations and unethical and prohibited business practices, and we considered the extent to which noncompliance 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 Charities Act 2011 and and UK Tax Legislation. We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls).
Appropriate audit procedures in response to these risks were carried. These procedures included: - Discussions with management, including consideration of known or suspected instances of non-compliance with laws and regulation and fraud;
-
Reading minutes of meetings of those charged with governance;
-
Obtaining and reading correspondence from legal and regulatory bodies including HMRC;
-
Identifying and testing journal entries;
-
Challenging assumptions and judgements made by management in their significant accounting estimates.
We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members; and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.
There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.
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 Auditors' report.
Page 16
WORLD MISSION AGENCY - WINNERS CHAPEL INTERNATIONAL (A company limited by guarantee)
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF WORLD MISSION AGENCY - WINNERS CHAPEL INTERNATIONAL (CONTINUED)
Use of our report
This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an Auditors' 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 charitable company and its members, as a body, for our audit work, for this report, or for the opinions we have formed.
Julian Flitter (Senior statutory auditor) for and on behalf of
Goodman Jones LLP 29/30 Fitzroy Square London W1T 6LQ
Date: 25-03-22
Page 17
WORLD MISSION AGENCY - WINNERS CHAPEL INTERNATIONAL
(A company limited by guarantee)
STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 DECEMBER 2020
| Note Income from: Donations and legacies 4 Charitable activities 5 Other trading activities Investments 6 Total income Expenditure on: Charitable activities 7 Other expenditure 8 Total expenditure Net movement in funds Reconciliation of funds: Total funds brought forward Net movement in funds Total funds carried forward |
Unrestricted funds 2020 £ 8,070,375 842,755 - 15,749 8,928,879 7,195,076 2,550,000 9,745,076 (816,197) 25,817,269 (816,197) 25,001,072 |
Restricted funds 2020 £ 9,845 - - - 9,845 8,164 - 8,164 1,681 5,000 1,681 6,681 |
Total funds 2020 £ 8,080,220 842,755 - 15,749 8,938,724 7,203,240 2,550,000 9,753,240 (814,516) 25,822,269 (814,516) 25,007,753 |
Total funds 2019 £ 10,224,460 120,246 2,235 50,231 10,397,172 |
|---|---|---|---|---|
| 8,159,041 - 8,159,041 |
||||
| 2,238,131 | ||||
| 23,584,138 2,238,131 25,822,269 |
The Statement of financial activities includes all gains and losses recognised in the year.
The notes on pages 21 to 39 form part of these financial statements.
Page 18
WORLD MISSION AGENCY - WINNERS CHAPEL INTERNATIONAL (A company limited by guarantee) REGISTERED NUMBER: 06994834
BALANCE SHEET AS AT 31 DECEMBER 2020
| Note Fixed assets Tangible assets 13 Current assets Stocks 14 Debtors 15 Cash at bank and in hand Creditors: amounts falling due within one year 16 Net current assets Total assets less current liabilities Provisions for liabilities Net assets excluding pension asset Total net assets Charity funds Restricted funds 19 Unrestricted funds 19 Total funds 18 |
162,712 477,058 15,507,970 16,147,740 (388,239) |
2020 £ 13,374,452 13,374,452 15,759,501 29,133,953 (4,126,200) 25,007,753 25,007,753 6,681 25,001,072 25,007,753 |
131,017 671,549 13,121,182 13,923,748 (1,268,549) |
2019 £ 13,693,420 13,693,420 12,655,199 26,348,619 (526,350) 25,822,269 25,822,269 5,000 25,817,269 25,822,269 |
|---|---|---|---|---|
The Trustees acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and preparation of financial statements.
The financial statements were approved and authorised for issue by the Trustees and signed on their behalf by:
................................................
Mr Enoch Akame
(Chair of Trustees) Date: 25-03-22
The notes on pages 21 to 39 form part of these financial statements.
Page 19
WORLD MISSION AGENCY - WINNERS CHAPEL INTERNATIONAL
(A company limited by guarantee)
STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2020
| Cash flows from operating activities Net cash used in operating activities Cash flows from investing activities Dividends, interests and rents from investments Proceeds from the sale of tangible fixed assets Purchase of tangible fixed assets Net cash used in investing activities Change in cash and cash equivalents in the year Cash and cash equivalents at the beginning of the year Cash and cash equivalents at the end of the year The notes on pages21 to 39form part of these financial statements |
2020 £ 2,938,438 15,749 - (567,399) (551,650) 2,386,788 13,121,182 15,507,970 |
2019 £ 2,207,434 50,231 10,001 (2,937,263) (2,877,031) (669,597) 13,790,779 13,121,182 |
|---|---|---|
Page 20
WORLD MISSION AGENCY - WINNERS CHAPEL INTERNATIONAL (A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020
1. General information
World Mission Agency - Winners Chapel International is a charitable company, limited by guarantee, registered in England and Wales, and whose registered office address is 1 Churchill Close, Green Street, Green Road, Dartford Kent DA1 1QE. The Charity's object is the advancement of the Christian faith.as stated in the Trustees' Report.
The Charity is a company limited by guarantee. The members of the company are the Trustees named on page 1. In the event of the Charity being wound up, the liability in respect of the guarantee is limited to £1 per member of the Charity.
2. Accounting policies
2.1 Basis of preparation of financial statements
The financial statements have been prepared in accordance with the Charities SORP (FRS 102) - 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), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.
World Mission Agency - Winners Chapel International 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.
The financial statements are prepared in sterling, which is the functional currency of the Charity. Monetary amounts in these financial statements are rounded to the nearest £.
2.2 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. The Trustees have considered the impacts that the Covid-19 pandemic may have for the Charity and it is deemed that the Charity can meet its commitments and liabilities and can continue for the foreseeable future. Given the Charity's current cash reserve, in full consideration of donations refunded (note 8), the Trustee's are of the opinion that the Charity can continue as a going concern; hence, it continues to adopt the going concern basis in preparing its financial statements.
2.3 Fund accounting
General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the Charity and which have not been designated for other purposes.
Designated funds comprise unrestricted funds that have been set aside by the Trustees for particular purposes. The aim and use of each designated fund is set out in the notes to the financial statements.
Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the Charity for particular purposes. The costs of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.
Investment income, gains and losses are allocated to the appropriate fund.
Page 21
WORLD MISSION AGENCY - WINNERS CHAPEL INTERNATIONAL (A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020
2. Accounting policies (continued)
2.4 Income
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 income receivable can be measured reliably.
Gifts in kind donated for distribution are included at valuation and recognised as income when they are distributed to the projects. Gifts donated for resale are included as income when they are sold. Donated facilities are included at the value to the Charity where this can be quantified and a third party is bearing the cost. No amounts are included in the financial statements for services donated by volunteers.
Income tax recoverable in relation to investment income is recognised at the time the investment income is receivable.
2.5 Interest receivable
Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the Charity; this is normally upon notification of the interest paid or payable by the institution with whom the funds are deposited.
2.6 Expenditure
Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources.
Expenditure on charitable activities is incurred on directly undertaking the activities which further the Charity's objectives, as well as any associated support costs.
All expenditure is inclusive of irrecoverable VAT.
2.7 Pensions
The Charity operates a defined contribution pension scheme and the pension charge represents the amounts payable by the Charity to the fund in respect of the year.
2.8 Operating leases
Rentals paid under operating leases are charged to the Statement of financial activities on a straight line basis over the lease term.
Page 22
WORLD MISSION AGENCY - WINNERS CHAPEL INTERNATIONAL (A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020
2. Accounting policies (continued)
2.9 Tangible fixed assets and depreciation
Tangible fixed assets costing £500 or more are capitalised and recognised when future economic benefits are probable and the cost or value of the asset can be measured reliably.
Tangible fixed assets are initially recognised at cost. After recognition, under the cost model, tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. All costs incurred to bring a tangible fixed asset into its intended working condition should be included in the measurement of cost.
Depreciation is charged so as to allocate the cost of tangible fixed assets less their residual value over their estimated useful lives, using the straight-line method.
Depreciation is provided on the following bases:
| Freehold property | - 2% straight line |
|---|---|
| Short-term leasehold property | - Period of lease |
| Plant and machinery | - 25% straight line |
| Motor vehicles | - 25% straight line |
| Fixtures and fittings | - 25% straight line |
| Office equipment | - 25% straight line |
| Computer equipment | - 25% Straight line |
Land and buildings include the costs of enhancements to the buildings after acquisition. The land element is not depreciated.
2.10 Stocks
Stocks are valued at the lower of cost and net realisable value after making due allowance for obsolete and slow-moving stocks. Cost includes all direct costs and an appropriate proportion of fixed and variable overheads.
2.11 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.
2.12 Cash at bank and in hand
Cash at bank and in hand includes cash and short-term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.
Page 23
WORLD MISSION AGENCY - WINNERS CHAPEL INTERNATIONAL (A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020
2. Accounting policies (continued)
2.13 Liabilities
Liabilities and provisions 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 Charity 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.
Provisions are measured at the best estimate of the amounts required to settle the obligation. Where the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised in the Statement of financial activities as a finance cost.
2.14 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 with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.
3. Critical accounting estimates and areas of judgment
The preparation of financial statements requires the use of certain critical accounting estimates. Management must also exercise judgemental in applying the Charity's accounting policies. The Trustees do not consider that there are any key sources of material uncertainty in the preparation of these financial statements.
Page 24
WORLD MISSION AGENCY - WINNERS CHAPEL INTERNATIONAL
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020
4. Income from donations and legacies
| Donations Total 2019 |
Unrestricted funds 2020 £ 8,070,375 10,178,495 |
Restricted funds 2020 £ 9,845 45,965 |
Total funds 2020 £ 8,080,220 10,224,460 |
Total funds 2019 £ 10,224,460 |
|---|---|---|---|---|
| 5. Income from charitable activities Bookshop Mission Expansion(see note 26) Total 2020 Total 2019 6. Investment income Deposit account interest Total 2019 |
Unrestricted funds 2020 £ 55,547 787,208 842,755 120,246 Unrestricted funds 2020 £ 15,749 50,231 |
Total funds 2020 £ 55,547 787,208 842,755 120,246 Total funds 2020 £ 15,749 50,231 |
Total funds 2019 £ 120,246 - 120,246 |
|---|---|---|---|
| Total funds 2019 £ 50,231 |
|||
Page 25
(A company limited by guarantee)
WORLD MISSION AGENCY - WINNERS CHAPEL INTERNATIONAL
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020
7. Analysis of expenditure on charitable activities
Summary by fund type
| Evangelism Welfare Education Church services Bookshop Joint Ministerial Agreement (JMA) Donations Total 2019 |
Unrestricted funds 2020 £ 1,613,850 474,561 100,013 3,564,890 269,366 802,899 369,497 7,195,076 8,118,076 |
Restricted funds 2020 £ 8,164 - - - - - - 8,164 40,965 |
Total funds 2020 £ 1,622,014 474,561 100,013 3,564,890 269,366 802,899 369,497 7,203,240 8,159,041 |
Total funds 2019 £ 2,594,513 202,566 84,800 3,761,942 324,263 1,010,699 180,258 8,159,041 |
|---|---|---|---|---|
8. Other expenditure
| Unrestricted | Total | Total | |
|---|---|---|---|
| funds | funds | funds | |
| 2020 | 2020 | 2019 | |
| £ | £ | £ | |
| Provision addition | 2,550,000 | 2,550,000 | - |
Between 2015 and 2020 the charity received donations and contributions towards the charity’s activities from companies under the control of one of the members of the church congregation. On the 4 August 2021, a claim was made by the liquidators of the primary donor company seeking repayment under the Insolvency Act 1986. A settlement was reached between the parties and pursuant to a settlement deed dated 3 March 2022 the charity agreed to repay £3,550,000 to the liquidators - £2,550,000 of unrestricted donations and £1,000,000 held as agent.
Page 26
(A company limited by guarantee)
WORLD MISSION AGENCY - WINNERS CHAPEL INTERNATIONAL
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020
9. Analysis of expenditure by activities
| Evangelism Welfare Education Church services Bookshop Joint Ministerial Agreement (JMA) Donations Total 2019 |
Activities undertaken directly 2020 £ 1,043,875 474,561 58,390 235,046 227,743 802,899 369,497 3,212,011 3,812,184 |
Support costs 2020 £ 774,057 39,234 - 3,138,704 39,234 - - 3,991,229 4,346,857 |
Total funds 2020 £ 1,817,932 474,561 97,624 3,373,750 266,977 802,899 369,497 7,203,240 8,159,041 |
Total funds 2019 £ 2,594,513 202,566 84,800 3,761,942 324,263 1,010,699 180,258 8,159,041 |
|---|---|---|---|---|
Analysis of direct costs
| Staff costs Other staff costs Office costs Admin Total 2019 |
Evangelism 2020 £ 561,213 - - 482,662 1,043,875 1,812,082 |
Welfare 2020 £ - 474,561 - - 474,561 202,566 |
Education 2020 £ 9,200 49,190 - - 58,390 41,332 |
Church services 2020 £ 165,604 11,760 54,457 3,225 235,046 284,452 |
Bookshop 2020 £ 184,004 - - 43,739 |
|---|---|---|---|---|---|
| 227,743 | |||||
| 280,795 |
Page 27
WORLD MISSION AGENCY - WINNERS CHAPEL INTERNATIONAL
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020
9. Analysis of expenditure by activities (continued)
Analysis of direct costs (continued)
| Staff costs Other staff costs Office costs Admin Total 2019 |
Joint Ministerial Agreement 2020 £ - - - 802,899 802,899 1,010,699 |
Donations 2020 £ - - - 369,497 369,497 180,258 |
Total funds 2020 £ 920,021 535,511 54,457 1,702,022 3,212,011 3,812,184 |
Total funds 2019 £ 820,070 309,628 45,735 2,636,751 3,812,184 |
|---|---|---|---|---|
Analysis of support costs
| Staff costs Depreciation Premises Office costs Admin Governance costs Total 2019 |
Evangelism 2020 £ 142,728 151,390 266,041 38,600 107,448 67,850 774,057 782,431 |
Education 2020 £ 7,929 8,411 14,780 2,145 5,969 - 39,234 43,468 |
Church services 2020 £ 634,342 672,844 1,182,404 171,562 477,552 - 3,138,704 3,477,490 |
Bookshop 2020 £ 7,929 8,411 14,780 2,145 5,969 - 39,234 43,468 |
Total funds 2020 £ 792,928 841,056 1,478,005 214,452 596,938 67,850 3,991,229 4,346,857 |
Total funds 2019 £ 717,391 891,710 1,644,535 264,661 743,035 85,525 4,346,857 |
|---|---|---|---|---|---|---|
10. Auditors' remuneration
The auditors' remuneration amounts to an auditor fee of £17,760 ( 2019 - £16,860 ).
Page 28
WORLD MISSION AGENCY - WINNERS CHAPEL INTERNATIONAL
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020
11. Staff costs
| Wages and salaries Social security costs Contribution to defined contribution pension schemes |
2020 £ 1,576,471 146,630 33,348 1,756,449 |
2019 £ 1,411,040 132,293 33,036 |
|---|---|---|
| 1,576,369 |
The average number of persons employed by the Charity during the year was as follows:
| Support Charitable activities |
2020 No. 30 32 62 |
2019 No. 30 25 |
|---|---|---|
| 55 |
No employee received remuneration amounting to more than £60,000 in either year.
The total employee benefits provided to key management personnel (The Executive Team) of the Charity was £358,196 (2019: £360,015).
12. Trustees' remuneration and expenses
During the year, no Trustees received any remuneration or other benefits (2019 - £NIL) .
During the year ended 31 December 2020, expenses totalling £ 6,300 were reimbursed or paid directly to 9 Trustees (2019 - £33,489 to 9 Trustees) .
Page 29
WORLD MISSION AGENCY - WINNERS CHAPEL INTERNATIONAL
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020
13. Tangible fixed assets
| Cost or valuation At 1 January 2020 Additions Disposals Transfers between classes At 31 December 2020 Depreciation At 1 January 2020 Charge for the year On disposals At 31 December 2020 Net book value At 31 December 2020 At 31 December 2019 |
Freehold property £ 13,885,702 9,412 (44,807) 234,771 14,085,078 1,371,866 206,463 (2,328) 1,576,001 12,509,077 12,513,836 |
Short-term leasehold property £ 886,711 401 (3,780) 150,578 1,033,910 817,434 62,952 (1,631) 878,755 155,155 69,277 |
Plant and machinery £ 2,125,297 90,140 (1,355) 37,089 2,251,171 1,520,837 306,180 (339) 1,826,678 424,493 604,460 |
Motor vehicles £ 21,569 - - - 21,569 21,569 - - 21,569 - - |
Fixtures and fittings £ 820,928 3,550 - - 824,478 |
|---|---|---|---|---|---|
| 692,755 63,961 - 756,716 |
|||||
| 67,762 | |||||
| 128,173 |
Included in land and buildings is freehold land at cost of £3,942,827 (2019: £3,942,827) which is not depreciated.
Page 30
WORLD MISSION AGENCY - WINNERS CHAPEL INTERNATIONAL
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020
13. Tangible fixed assets (continued)
| Cost or valuation At 1 January 2020 Additions Disposals Transfers between classes At 31 December 2020 Depreciation At 1 January 2020 Charge for the year On disposals At 31 December 2020 Net book value At 31 December 2020 At 31 December 2019 |
Office equipment £ 1,682,147 99,101 - 16,554 1,797,802 1,493,126 155,794 - 1,648,920 148,882 189,021 |
Computer equipment £ Assets under construction £ 285,898 105,546 2,440 362,355 - - 11,632 (450,624) 299,970 17,277 202,791 45,373 - - - - 248,164 - 51,806 17,277 83,107 105,546 |
Total £ 19,813,798 567,399 (49,942) - 20,331,255 6,120,378 840,723 (4,298) 6,956,803 13,374,452 13,693,420 |
|---|---|---|---|
Page 31
(A company limited by guarantee)
WORLD MISSION AGENCY - WINNERS CHAPEL INTERNATIONAL
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020
14. Stocks
| Finished goods and goods for resale 15. Debtors Due within one year Other debtors Prepayments and accrued income |
2020 £ 162,712 2020 £ 109,877 367,181 477,058 |
2019 £ 131,017 |
|---|---|---|
| 2019 £ 285,499 386,050 |
||
| 671,549 |
16. Creditors: Amounts falling due within one year
| Trade creditors Other creditors Accruals and deferred income |
2020 £ 39,044 232,997 116,198 388,239 |
2019 £ 122,401 1,002,597 143,551 |
|---|---|---|
| 1,268,549 |
Within other creditors is £232,697 (2019: £1,002,597) in respect of Shiloh donations and the JMA (Joint Ministries Agreement) commitment. Shiloh represents amounts collected on behalf of Living Faith Worldwide for the Annual Conference. The JMA commitment relates to the tithe to Living Faith Church Worldwide in accordance with the agreement between both entities.
From December 2020, Shiloh donations are no longer collected on behalf of Living Faith Church, and are to be used for Mission Expansion within the United Kingdom.
17. Financial instruments
| 2020 | 2019 | |
|---|---|---|
| £ | £ | |
| Financial assets | ||
| Financial assets measured at fair value through income and expenditure | 15,507,970 | 13,121,182 |
Page 32
(A company limited by guarantee)
WORLD MISSION AGENCY - WINNERS CHAPEL INTERNATIONAL
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020
18. Provisions
| At 1 January 2020 Additions |
Dilapidation £ 526,350 49,850 576,200 |
Other provision £ - 3,550,000 3,550,000 |
Total £ 526,350 3,599,850 4,126,200 |
|---|---|---|---|
Dilapidation Provision
A provision has been made in respect of expected costs of repairs to leasehold properties at the end of the lease agreements.
Other Provision
The provision of £3,550,000 relates to a refund of donations in accordance with a settlement agreement dated 3 March 2022. Further details are given in note 8 to these accounts.
Page 33
WORLD MISSION AGENCY - WINNERS CHAPEL INTERNATIONAL
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020
19. Statement of funds
Statement of funds - current year
| Unrestricted funds Designated funds Designated Fund - Humanitarian Designated Fixed Assets Fund Designated Property Acquisition Fund Designated fund - Mission Expansion General funds General Funds - all funds Total Unrestricted funds Restricted funds Restricted Fund - Transport Offering Restricted Fund - Project offering Total of funds |
Balance at 1 January 2020 £ 667,591 13,693,420 2,827,409 - 17,188,420 8,628,849 25,817,269 - 5,000 5,000 25,822,269 |
Income £ - - - - - 8,928,879 8,928,879 8,164 1,681 9,845 8,938,724 |
Expenditure £ (369,497) (841,056) - - (1,210,553) (8,534,523) (9,745,076) (8,164) - (8,164) (9,753,240) |
Transfers in/out £ 178,774 522,088 (395,162) 787,208 1,092,908 (1,092,908) - - - - - |
Balance at 31 December 2020 £ 476,868 13,374,452 2,432,247 787,208 17,070,775 |
|---|---|---|---|---|---|
| 7,930,297 | |||||
| 25,001,072 | |||||
| - 6,681 6,681 |
|||||
| 25,007,753 |
Page 34
WORLD MISSION AGENCY - WINNERS CHAPEL INTERNATIONAL
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020
19. Statement of funds (continued)
Statement of funds - prior year
| Unrestricted funds Designated funds Designated Fund - Humanitarian Designated Fixed Assets Fund Designated Property Acquisition Fund General funds General Funds - all funds Total Unrestricted funds Restricted funds Restricted Fund - Transport Offering Restricted Fund - Project offering Total of funds |
Balance at 1 January 2019 £ 642,751 11,647,867 5,764,673 18,055,291 5,528,847 23,584,138 - - - 23,584,138 |
Income £ - - - - 10,351,207 40,965 5,000 45,965 10,351,207 10,397,172 |
Expenditure £ (180,257) (891,711) - (1,071,968) (7,046,108) (8,118,076) (40,965) - (40,965) (8,159,041) |
Transfers in/out £ 205,097 2,937,264 (2,937,264) 205,097 (205,097) - - - - - |
Balance at 31 December 2019 £ 667,591 13,693,420 2,827,409 17,188,420 |
|---|---|---|---|---|---|
| 8,628,849 | |||||
| 25,817,269 | |||||
| - 5,000 5,000 |
|||||
| 25,822,269 |
Page 35
WORLD MISSION AGENCY - WINNERS CHAPEL INTERNATIONAL (A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020
19. Statement of funds (continued)
The Designated Humanitarian Fund relates to amounts the Trustees have committed towards local humanitarian activities.
The Designated Fixed Assets Fund represents the net book value of the Charity's fixed assets. Without these assets, the Charity will be unable to carry out its activities. Accordingly, a designated fund has been created to recognise this.
The Designated Property Acquisition Fund represents amounts allocated toward the acquisition of properties to conduct church services at a number of locations.
The Designated Fund - Shiloh represents amounts no longer remitted to the Living Faith Church from December 2020 as they are to be used for Mission Expansion in the United Kingdom.
The Restricted Fund for Transports Offerings represents all of the donations received in the year towards transportation expenses.
The Restricted Fund for Project Offering represents a specific donation towards the purchase of an altar in the Dartford location.
20. Analysis of net assets between funds
Analysis of net assets between funds - current period
| Unrestricted funds 2020 £ Tangible fixed assets 13,374,452 Current assets 16,141,059 Creditors due within one year (388,239) Provisions for liabilities and charges (4,126,200) Total 25,001,072 |
Restricted funds 2020 £ - 6,681 - - 6,681 |
Total funds 2020 £ 13,374,452 16,147,740 (388,239) (4,126,200) 25,007,753 |
|---|---|---|
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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020
20. Analysis of net assets between funds (continued)
Analysis of net assets between funds - prior period
| Tangible fixed assets Current assets Creditors due within one year Provisions for liabilities and charges Total |
Unrestricted funds 2019 £ 13,693,420 13,918,748 (1,268,549) (526,350) 25,817,269 |
Restricted funds 2019 £ - 5,000 - - 5,000 |
Total funds 2019 £ 13,693,420 13,923,748 (1,268,549) (526,350) 25,822,269 |
|---|---|---|---|
21. Reconciliation of net movement in funds to net cash flow from operating activities
| Net income/expenditure for the period (as per Statement of Financial Activities) Adjustments for: Depreciation charges Dividends, interests and rents from investments Loss on the sale of fixed assets Decrease/(increase) in stocks Decrease in debtors Increase/(decrease) in creditors Net cash provided by operating activities |
2020 £ (814,516) 840,723 (15,749) (31,695) 194,491 2,719,540 2,938,438 45,644 |
2019 £ 2,238,131 891,710 (50,231) 28,550 24,494 1,009,193 (1,934,413) 2,207,434 |
|---|---|---|
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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020
22. Analysis of cash and cash equivalents
| Cash in hand Notice deposits (less than 3 months) Total cash and cash equivalents |
2020 £ 8,023,890 7,484,080 15,507,970 |
2019 £ 3,496,045 9,625,137 |
|---|---|---|
| 13,121,182 |
23. Analysis of changes in net debt
| Cash at bank and in hand | At 1 January 2020 £ 13,121,182 13,121,182 |
Cash flows £ 2,386,788 2,386,788 |
At 31 December 2020 £ 15,507,970 15,507,970 |
|---|---|---|---|
24. Pension commitments
The group operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the group in an independently administered fund. The pension cost of contributions in the year was £33,348 (2019: £33,036) and there was no balance payable to the fund at the balance sheet date.
25. Operating lease commitments
At 31 December 2020 the Charity had commitments to make future minimum lease payments under noncancellable operating leases as follows:
| Not later than 1 year Later than 1 year and not later than 5 years Later than 5 years |
2020 £ 319,810 567,041 71,458 958,309 |
2019 £ 350,102 519,096 47,500 |
|---|---|---|
| 916,698 |
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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020
26. Related party transactions
The Charity is a branch of Living Faith Church Worldwide with headquarters in Nigeria. During the year, the Charity received donations on behalf of Living Faith Church for the International Convention of the Church - (Shiloh). The amount outstanding to be remitted as at 31 December 2020 was £20,032 (2019: £733,487) and is included in creditors. As of December 2020, the Shiloh donations are no longer remitted to the Living Faith Church, and are to be used for Mission Expansion in the United Kingdom. As a result, only the Shiloh donations received prior to December 2020 are outstanding at the balance sheet date. The income received for Mission Expansion amounted to £787,208 (2019: £nil).
Under the terms of a Joint Ministries Agreement (JMA) signed in January 2013, £802,899 (2019: £1,010,699), was payable to Living Faith Church in the year in respect of tithes. As at 31 December 2020, £212,665 (2019: £269,110) was outstanding to be remitted to Living Faith Church Worldwide.
During the year, donations totalling £46,807 (2019: £28,774) were received from trustees. No restrictions were attached to these donations. In addition, throughout the year the Trustees attend services and other events within the Church in their capacity as worshippers and church members, and not just as trustees. In the course of doing so, they contribute to the offertory and make tithes and other financial contributions. The nature of such giving means that it is not always possible to quantify the total amount donated to the Charity by the Trustees during any financial year.
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