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2021-12-31-accounts

ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

Rhema UK & Ireland

(A company limited by guarantee) Charity registration number: 1150046 Company registration number: 08106501

Independent Examiners Ltd 2 Broadbridge Business Centre Delling Lane Bosham PO18 8NF

Rhema UK & Ireland

Contents

Reference and Administrative Details 1
Trustees' Report 2 to 6
Independent Examiner's Report 7
Statement of Financial Activities 8
Balance Sheet 9
Notes to the Financial Statements 10 to 18

Rhema UK & Ireland

Reference and Administrative Details

Trustees Kevin Hugh Fletcher
Joel Taller
Alan Morton
John Grunewald
Tobias Avery
Charity Registration 1150046
Number
Company Registration 08106501
Number
The charity is incorporated in England.
Registered Office 2 Broadbridge Business Centre
Delling Lane
Bosham
PO18 8NF
Independent Examiner G W Schulz ACMA
Independent Examiners Ltd
2 Broadbridge Business Centre
Delling Lane
Bosham
PO18 8NF
Bankers Barclays
Leicester
LE87 2BB

Page 1

Rhema UK & Ireland

Trustees' Report

The Trustees, who are directors for the purposes of company law, present the annual report together with the financial statements of the charitable company for the year ended 31 December 2021.

Structure, governance and management

Nature of governing document

The company is registered as a charitable company limited by guarantee and was set up by a Memorandum of Association on 14/6/2012.

Recruitment and appointment of Trustees

The management of the company is the responsibility of the Trustees who are elected and co-opted under the terms of the Articles of Association.

Risk management

The Trustees have assessed the major risks to which the charity is exposed, in particular those related to the operations and finances of the charity, and are satisfied that systems and procedures are in place to mitigate our exposure to the major risks.

Objectives and activities

Policies and objectives

Rhema UK & Ireland's charitable purposes as set out in the company's Memorandum and Articles of Association are to:

• Advance the Christian faith in such ways and in such parts of the United Kingdom or the world as the Trustees from time to time may think fit.

• Relieve sickness and financial hardship and to promote and preserve good health by the provision of funds, goods or services of any kind, including through the provision of counseling and support in such parts of the United Kingdom or the world as the Trustees from time to time may think fit.

• Advance education in such ways and in such parts of the United Kingdom or the world as the Trustees from time to time may think fit.

These objects are being accomplished in two main areas:

• Training - Through Bible Colleges, Training Conferences and providing Christian teaching material, individuals are trained in foundational Christian doctrines as well as receiving specific training for Christian ministry.

• Churches - Through the planting of local churches as well as assisting other churches and Christian ministries through networking for mutual support and strengthening.

Public benefit

The Trustees confirm that they have complied with the requirements of section 17 of the Charities Act 2011 to have due regard to the public benefit guidance published by the Charity Commission for England and Wales.

Page 2

Rhema UK & Ireland

Trustees' Report

Activities for achieving objectives

The main activities in relation to the above objectives are:

  1. The operation of Rhema Bible Colleges in the following locations:

  2. a. London England

  3. b. Manchester England

All campuses are operated as online schools. Online classes are provided every three weeks with a short break during the summer. The programme takes three years to complete with students receiving Diplomas after completion.

Since 2011 Rhema Bible College in the United Kingdom has awarded 195 Certificates of Completion and 180 Diplomas. Fifteen graduates are currently pastoring churches while many others are serving in important staff and/or leadership positions in their local churches as well as being and influential Christian witness in their communities and through marketplace ministry. Because service is an important part of the ethos of Rhema UK & Ireland most students, upon completion of their studies, are very faithful to support their local churches and other Christian ministries through service and outreach programmes in the United Kingdom and around the world.

  1. Partnering with DCPI (Dynamic Church Planting International) to provide church planting training in the UK and Ireland. RUKI began a partnership with DCPI in April 2012. Since that time RUKI has offered training at different locations in the United Kingdom and other locations around the world. These are provided free of charge.

  2. Rhema UK & Ireland began hosting Rhema and Friends events in 2011. These events exist for the purpose of joining together Rhema Bible College alumni, students, and those interested in the mission of Rhema UK & Ireland for Biblical exhortation, prayer, fellowship, mutual encouragement, and networking.

  3. Rhema UK & Ireland is actively planting churches in the United Kingdom with the first of these being Rhema Family Church - London. The vision is to see a network of churches vitally connected to the overall mission and vision of Rhema UK & Ireland.

Achievements and performance

The year 2021, although still challenging in some ways, has also been quite exciting as we restarted fortnightly in-person services for Rhema Family Church on 29th May. Rhema Family Church also sent a couple, Tim and Nicola Creelman, to Northern Ireland with the goal of planting a church. There are also two other couples from RFC who are planning to plant new churches in the next 1 -3 years.

All staff and leadership are continuing to work remotely with some meetings through Zoom and others in person. The financial position of RUKI remains strong as the impact of Covid-19 has been minimized.

A marketing team was organized in March to work on promotion for Rhema Bible College. We have already seen results from their marketing efforts and look forward to greater results as they continue to meet and execute their plans to grow student numbers.

Page 3

Rhema UK & Ireland

Trustees' Report

Planning started in September for a Graduation Service to be held in June 2022. In addition to the Rhema Bible College graduation, there will be an ordination service. A list of those who are eligible for ordination will be invited to participate. This will be the first step in the development of the Rhema UK & Ireland licensing and ordination programme.

Nancy Jaspersen, a missionary from the USA who has been assisting with the development and administration of the Rhema Bible College campuses since 2015 is planning to move back to the United States in the late spring or early summer of 2022. With Nancy leaving the decision was made to offer Nicola Creelman a position as an Administrative Assistant. Nicola accepted the role and began 1 October for 20 hours a week. This will eventually lead to a full-time role as Nancy Jaspersen transitions back to the USA.

In November Kevin and Susan Fletcher informed the trustees that the Lord was leading them to step down from the Director role for Rhema UK & Ireland and their roles as pastors of Rhema Family Church. The trustees approved the decision for Toby Avery to assume the role of director of Rhema UK & Ireland effective 1 April 2022. The trustees also approved the decision to merge Rhema Family Church and His Life Church with Toby & Michele Avery as the pastors and the transfer of all assets of Rhema Family Church to His Life Church. Kevin Fletcher will remain a Trustee through 2022 and will continue to handle the finances until a suitable person can be identified to take over that role.

The first Ignite events were held in October in London and Manchester. These events were an opportunity for Rhema students, graduates, and those interested in Rhema to gather together for teaching, prayer, and fellowship. Both events were well attended with a high level of excitement. Many in attendance were looking forward to future Ignite events in 2022.

Financial review

Income for the year amounted to £182,083 (2020: £172,508) and expenditure £98,200 (2020: £123,978). The surplus was added to funds brought forward, with general funds being £34,536 at the year end.

Policy on reserves

The trustees have determined that, in line with their belief that God provides for the work to which He calls His people, no reserves should be maintained for the work of the charity.

Plans for future periods

The year 2022 began with the planning and implementation of significant changes in the leadership of Rhema UK & Ireland and Rhema Family Church as Kevin and Susan Fletcher along with Trent and Jessica Fletcher relocated to the United States in February. The merger of Rhema Family Church and His Life Church was completed in February and Toby Avery assumed the role of Director of Rhema UK & Ireland in April.

More Ignite events were planned for 2022 in London and Manchester along with events in Northern Ireland and the Republic of Ireland.

Page 4

Rhema UK & Ireland

Trustees' Report

Rhema Bible College has continued to operate as a fully online school. Discussion is ongoing concerning a plan for in-person classes sometime in the future.

In June the graduation/ordination service was held in the Birmingham area. This was the first graduation service since 2019. It was a blessing to celebrate with the graduates from the last few years as they were honored for the completion of their Rhema training. The ordination and licensing program for Rhema UK & Ireland began with the ordination of seven ministers.

Page 5

Rhema UK & Ireland

Trustees' Report

Statement of Responsibilities

The Trustees (who are also the directors of Rhema UK & Ireland 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), including FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland".

Company law requires the Trustees to prepare financial statements for each financial year. Under company law the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including its income and expenditure, of the charitable company for that period. In preparing these financial statements, the Trustees are required to:

The Trustees are responsible for keeping proper accounting records that can disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Small companies provision statement

This report has been prepared in accordance with the small companies regime under the Companies Act 2006.

Approved by the Trustees of the charity on 31 October 2022 and signed on its behalf by:

......................................... Kevin Hugh Fletcher Trustee

Page 6

Rhema UK & Ireland

Independent Examiner's Report to the Trustees of Rhema UK & Ireland

I report to the charity Trustees on my examination of the accounts of the charity for the year ended 31 December 2021 which are set out on pages 8 to 18.

Responsibilities and basis of report

As the charity’s Trustees of Rhema UK & Ireland (and also its directors for the purposes of company law) you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 (‘the 2006 Act’).

Having satisfied myself that the accounts of Rhema UK & Ireland are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of your charity’s accounts as carried out under section 145 of the Charities Act 2011 (‘the 2011 Act’). In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.

Independent examiner’s statement

I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe:

  1. accounting records were not kept in respect of Rhema UK & Ireland as required by section 386 of the 2006 Act; or

  2. the accounts do not accord with those records; or

  3. the accounts do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a ‘true and fair view' which is not a matter considered as part of an independent examination; or

  4. the accounts have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities [applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)].

I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.

...................................... G W Schulz ACMA Independent Examiners Ltd 2 Broadbridge Business Centre Delling Lane Bosham PO18 8NF

31 October 2022

Page 7

Rhema UK & Ireland

Statement of Financial Activities for the Year Ended 31 December 2021

Note
Unrestricted
funds
£
Income and Endowments from:
Donations and legacies
3
12,786
Charitable activities
4
59,831
Total income
72,617
Expenditure on:
Charitable activities
5
76,255
Total expenditure
76,255
Net
(expenditure)/income
(3,638)
Net movement in funds
(3,638)
Reconciliation of funds
Total funds brought
forward
38,174
Total funds carried
forward
12
34,536		 Restricted
funds
£
109,466
-
109,466
21,945
21,945
87,521
87,521
137,698
225,219		 Total
2021
£
122,252
59,831
182,083
98,200
98,200
83,883
83,883
175,872
259,755		 Total
2020
£
109,727
62,781
172,508
123,978
123,978
48,530
48,530
127,342
175,872

The notes on pages 10 to 18 form an integral part of these financial statements. Page 8

Rhema UK & Ireland

Registered number: 08106501 Balance Sheet as at 31 December 2021

Note
Current assets
Debtors
10
Cash at bank and in hand
Creditors: Amounts falling due within one year
11
Net assets
Funds of the charity:
Restricted income funds
Restricted funds
Unrestricted income funds
Unrestricted funds
Total funds
12		 2021
£
26,320
236,000
262,320
(2,565)
259,755
225,219
34,536
259,755		 2020
£
18,203
158,939
177,142
(1,270)
175,872
137,698
38,174
175,872

For the financial year ending 31 December 2021 the charity was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Directors' responsibilities:

These financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.

The financial statements on pages 8 to 18 were approved by the Trustees, and authorised for issue on 31 October 2022 and signed on their behalf by:

......................................... Kevin Hugh Fletcher Trustee

The notes on pages 10 to 18 form an integral part of these financial statements. Page 9

Rhema UK & Ireland

Notes to the Financial Statements for the Year Ended 31 December 2021

1 Charity status

The charity is limited by guarantee, incorporated in England, and consequently does not have share capital. Each of the Trustees is liable to contribute an amount not exceeding £1 towards the assets of the charity in the event of liquidation.

2 Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice (applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)) (issued in October 2019) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

Basis of preparation

Rhema UK & Ireland meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy notes.

Going concern

The Trustees consider that there are no material uncertainties about the charity's ability to continue as a going concern nor any significant areas of uncertainty that affect the carrying value of assets held by the charity.

Income and endowments

All income is recognised once the charity has entitlement to the income, it is probable that the income will be received and the amount of the income receivable can be measured reliably.

Donations and legacies

Donations are recognised when the charity has been notified in writing of both the amount and settlement date. In the event that a donation is subject to conditions that require a level of performance by the charity before the charity is entitled to the funds, the income is deferred and not recognised until either those conditions are fully met, or the fulfilment of those conditions is wholly within the control of the charity and it is probable that these conditions will be fulfilled in the reporting period.

Page 10

Rhema UK & Ireland

Notes to the Financial Statements for the Year Ended 31 December 2021

Gift aid

Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.

Investment income

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the company; this is normally upon notification of the interest paid or payable by the Bank.

Expenditure

All expenditure is recognised once there is a legal or constructive obligation to that expenditure, it is probable settlement is required and the amount can be measured reliably. All costs are allocated to the applicable expenditure heading that aggregate similar costs to that category.

Charitable activities

Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them.

Grant expenditure

Grants payable are charged in the year when the offer is made except in those cases where the offer is conditional, such grants being recognised as expenditure when the conditions attaching are fulfilled. Grants offered subject to conditions which have not been met at the year end are noted as a commitment, but not accrued as expenditure.

Taxation

The charity is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the charity is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.

Tangible fixed assets

Individual fixed assets costing £500.00 or more are initially recorded at cost.

Page 11

Rhema UK & Ireland

Notes to the Financial Statements for the Year Ended 31 December 2021

Depreciation and amortisation

Depreciation is provided on tangible fixed assets so as to write off the cost or valuation, less any estimated residual value, over their expected useful economic life as follows:

Asset class Depreciation method and rate
Sound equipment 25% on cost
Fixtures and fittings 25% on cost
Computer equipment 33% on cost

Debtors

Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Liabilities

Liabilities are recognised when there is an obligation at the Balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably.

Liabilities are recognised at the amount that the company anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide.

Fund structure

Unrestricted income funds are general funds that are available for use at the trustees' discretion in furtherance of the objectives of the charity.

Restricted income funds are those donated for use in a particular area or for specific purposes, the use of which is restricted to that area or purpose.

Pensions and other post retirement obligations

The charity operates a defined contribution pension scheme which is a pension plan under which fixed contributions are paid into a pension fund and the charity has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised in the Statement of Financial Activities when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

Page 12

Rhema UK & Ireland

Notes to the Financial Statements for the Year Ended 31 December 2021

Financial instruments

The company only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.

3 Income from donations and legacies

Donations and legacies;
Donations
Gift aid reclaimed		 Unrestricted
funds
General
£
12,786
-
12,786		 Restricted
funds
£
84,733
24,733
109,466		 Total
2021
£
97,519
24,733
122,252		 Total
2020
£
93,774
15,953
109,727

4 Income from charitable activities

Unrestricted
funds
General
£
Tuition fees
59,831		 Total
2021
£
59,831		 Total
2020
£
62,781

Page 13

Rhema UK & Ireland

Notes to the Financial Statements for the Year Ended 31 December 2021

5 Expenditure on charitable activities

Note
Premises costs
Instructor fees
Hospitality
Textbooks
Equipment
Travel and
accommodation
Advertising
Printing
stationery and
Telephone and
internet
Insurance
Legal &
professional
Ministry costs
Training
Bank charges
Sundry expenses
Independent
examination
Depreciation
Grant funding of
activities
6
Staff costs
8		 Unrestricted
funds
General
£
10,809
6,015
1,165
642
666
2,583
3,251
5,766
3,465
1,012
-
-
-
171
161
960
-
1,694
37,895
76,255		 Restricted
funds
£
7,950
-
2,204
9
1,268
622
350
1,874
-
-
-
2,055
-
316
-
-
-
5,297
-
21,945		 Total
2021
£
18,759
6,015
3,369
651
1,934
3,205
3,601
7,640
3,465
1,012
-
2,055
-
487
161
960
-
6,991
37,895
98,200		 Total
2020
£
25,790
7,367
1,635
303
7,992
5,421
1,649
9,821
3,218
991
9,836
3,075
20
433
341
960
2,416
18,363
24,347
123,978

Page 14

Rhema UK & Ireland

Notes to the Financial Statements for the Year Ended 31 December 2021

6 Grant-making

Analysis of grants

Grants Grants to institutions
2021
£
2020
£
2,278
18,363		 Grants to individuals
2021
£
2020
£
4,713
-

7 Trustees remuneration and related party transactions

Joel Taller, a Trustee, received honoraria amounting to £900 (2020 - £900).

Kevin Fletcher, a Trustee, received honoraria of £1,650 (2020 - £1,200) and remuneration of £12,000 (2020 - £12,000) and his wife also received remuneration amounting to £12,000 (2020 - £12,000) and honoraia of £300 (2020 - £300). The daughter-in-law of Kevin Fletcher received honoraria amounting to £600 (2020 - £600).

The only other payments made to the Trustees, or any person connected with them, consisted of reimbursements of expenditure incurred on behalf of the charity in furthering the charity's objects.

8 Staff costs

The aggregate payroll costs were as follows:

Staff costs during the year were:
Wages and salaries
Pension costs		 2021
£
36,000
1,895
37,895		 2020
£
24,000
347
24,347

The monthly average number of persons (including senior management / leadership team) employed by the charity during the year expressed as full time equivalents was as follows:

2021 2020
No No
Staff 2 2

No employee received emoluments of more than £60,000 during the year.

Page 15

Rhema UK & Ireland

Notes to the Financial Statements for the Year Ended 31 December 2021

9 Tangible fixed assets

9 Tangible fixed assets
Furniture
and
equipment
£
Computer
equipment
£
Cost
At 1 January 2021
2,826
2,300
At 31 December 2021
2,826
2,300
Depreciation
At 1 January 2021
2,826
2,300
At 31 December 2021
2,826
2,300
Net book value
At 31 December 2021
-
-
At 31 December 2020
-
-
10 Debtors
Accrued income
Other debtors
11 Creditors: amounts falling due within one year
Other taxation and social security
Other creditors
Accruals		 Computer
equipment
£
2,300		 Sound
equipment
£
3,777		 Total
£
8,903
8,903
8,903
8,903
-
-
2020
£
15,953
2,250
2,300 3,777
2,300 3,777
2,300 3,777
- -
- -
2021
£
24,070
2,250
26,320
2021
£
1,319
396
850
2,565
18,203
2020
£
222
198
850
1,270

Page 16

Rhema UK & Ireland

Notes to the Financial Statements for the Year Ended 31 December 2021

12 Funds

Unrestricted funds
General
General Fund
Restricted funds
Rhema Family Church
His Life Church
Total funds
Unrestricted funds
General
General Fund
Restricted funds
Rhema Family Church
Rhema Europe, Africa,
Middle East
His Life Church
Total funds		 Balance at
1 January
2021
£
38,174
99,937
37,761
137,698
175,872
Balance at
1 January
2020
£
33,774
49,759
7,920
35,889
93,568
127,342		 Incoming
resources
£
72,617
95,086
14,380
109,466
182,083
Incoming
resources
£
76,148
80,287
-
16,073
96,360
172,508		 Resources
expended
£
(76,255)
(20,731)
(1,214)
(21,945)
(98,200)
Resources
expended
£
(71,748)
(30,109)
(7,920)
(14,201)
(52,230)
(123,978)		 Balance at
31
December
2021
£
34,536
174,292
50,927
225,219
259,755
Balance at
31
December
2020
£
38,174
99,937
-
37,761
137,698
175,872

Page 17

Rhema UK & Ireland

Notes to the Financial Statements for the Year Ended 31 December 2021

13 Analysis of net assets between funds

Current assets
Current liabilities
Total net assets
Current assets
Current liabilities
Total net assets		 Unrestricted
funds
General
£
37,101
(2,565)
34,536
Unrestricted
funds
General
£
39,444
(1,270)
38,174		 Restricted
funds
£
225,219
-
225,219
Restricted
funds
£
137,698
-
137,698		 Total funds
at 31
December
2021
£
262,320
(2,565)
259,755
Total funds
at 31
December
2020
£
177,142
(1,270)
175,872

Page 18