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2021-12-31-accounts

GRACE TO YOU EUROPE

REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

Company No: 08211924 Registered Charity Number: 1150277

GRACE TO YOU EUROPE

REPORT AND FINANCIAL STATEMENTS

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Contents Page No.
Company Information 1
Report of the Trustees 2 - 6
Report of the Independent Examiner 7
Statement of Financial Activities 8
Balance Sheet 9
Cash Flow 10
Notes to the Financial Statements 11 - 16
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GRACE TO YOU EUROPE

COMPANY INFORMATION

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Registered Company Number 08211924
Registered Charity Number 1150277
Trustees Mr Phillip Johnson
Mr Christian Andresen
Mr Andrew Curry
Mr Jay Flowers
Senior Management Team Mr P Mitchell
Mrs D Mitchell
Registered Office 5 Caxton House
Wellesley Road
Ashford
Kent TN24 8ET
Solicitors Messrs Hallett & Co
11 Bank Street
Ashford
Kent TN23 1DA
Independent examiner M Wilkes FCA
Azets Audit Services
5th Floor
Ashford Commercial Quarter
1 Dover Place
Ashford
Kent TN23 1FB
Bankers CAF Bank Limited
25 Kings Hill Avenue
West Malling
Kent ME19 4JQ
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GRACE TO YOU EUROPE

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2021

The Trustees present their report and examined financial statements of the charity for the year ended 31 December 2021. The Trustees have adopted the provisions of the Statement of Recommended Practice (SORP) “Accounting and Reporting by Charities” (FRS 102) in preparing the annual report and financial statements of the charity.

The financial statements have been prepared in accordance with the accounting policies set out in notes to the accounts and comply with the charity’s governing document, the Charities Act 2011, the Companies Act 2006 and 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 published on 16 July 2014 as amended by Bulletin 1.

Objectives of the charity

The advancement of the Christian faith and such other charitable purposes as the Trustees shall from time to time determine.

Public benefit statement

The Trustees confirm that they have referred to the guidance contained in the Charity Commission’s general guidance on public benefit when reviewing the Trust’s aims and objectives and in planning future activities.

Achievements and performance in the period

The main method that Grace to You Europe employs in carrying out its charitable activity, which provides public benefit, is radio ministry. During 2021 we broadcast our daily radio programme, Grace to You, throughout the United Kingdom of Great Britain and Northern Ireland on Premier Christian Radio. Members of the public living in those regions of Europe not covered by our radio reach were able to access the daily programmes, and thousands of free audio and video resources, through our website.

On a bi-monthly basis we sent a pastoral letter from John MacArthur to all those on our mailing list; on each occasion there was an offer of either a free book or CD, without any obligation to make a financial donation.

Book Translation Projects

During the past year we agreed to financially support several projects that would enable books by John MacArthur to be translated from English into other European languages.

The largest grant of £20,138 was made to FACLIA Publishing House of Oradea, to cover the costs of translating and publishing Saved Without a Doubt and You Must Be Born Again into ROMANIAN, and to begin the process of producing a Romanian edition of the MacArthur Study Bible.

A total of £3,527 was granted to facilitate the translation and publication of Saved Without A Doubt, Jesus Unleashed and various booklets in the Spotlight on Scripture series for free distribution to congregations of the Hungarian Baptist churches in Romania.

A total of £2,153 was granted to facilitate the translation, publication and free distribution of various Spotlight on Scripture booklets into SERBIAN.

A total of £1,800 was granted to facilitate the translation, publication and free distribution of various Spotlight on Scripture booklets into POLISH.

We have designated £70,000 of our Reserves for book and MacArthur Study Bible translation projects in Eastern Europe during 2022.

GRACE TO YOU EUROPE

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2021

Grace Reaches Out to Romania

During the early summer of 2020 we commenced the most exciting and most challenging translation project undertaken by Grace to You Europe to date. This project hopes to achieve over a 5-6 year period the translation and re-voicing of some 600 key sermons by John MacArthur into the Romanian language. The intention is that these sermons will be made free to download in both transcript and audio format through the GTY website. However, the audio files will also be used by our ministry partners in Romania to produce radio programmes for broadcasting throughout Romania and the world-wide Romanian diaspora, which is rapidly increasing because of economic migration. We have agreed to fund the Grace Reaches Out to Romania project on the basis that our ministry partners in Romania will assume responsibility for maintaining and financing the project beyond year 2026 through Har prin Cuvant, a legally registered charity in Romania.

The work out-put of the translators/sermon recording/technical team should increase significantly during 2022, so we have designated £75,000 of our Reserves for the funding of Grace Reaches Out to Romania.

Conferences

Due to the travel restrictions resulting from the COVID-19 pandemic we were required to postpone all conferences during 2020/21, but it is hoped that some of these can now be rescheduled. We have designated £25,000 of our Reserves for conference ministry during 2022.

Prison ministry

Throughout the year we were contacted by the inmates of 16 different U.K prisons and young offenders’ institutions who had been listening to our daily radio broadcasts. We also received requests for our free resources from prison chaplains for distribution in their pastoral ministry. During the year we specifically donated MacArthur Study Bibles and other literature to the value of £1,250 to the chaplains of Christian Prison Resourcing.

Shepherds' Conference

We have sponsored the attendance at Shepherds’ Conference of 3 pastors with grants made towards the costs of air tickets.

Hardship grants for Pastors

Many, if not most, pastors in Eastern Europe receive very modest salaries, which are not always sufficient to support a family. Consequently, many pastors’ wives must work full-time outside the home in-order to contribute to the family budget, or the pastor needs to take on additional manual work, such as bee keeping or farming, which can have a significant detrimental impact upon the time he can dedicate to his ministry. Over the course of several years, we have tried to provide some financial support to a small number of pastors in Eastern Europe who have struggled to provide for their families. However, during 2020/21 the income of some bi-vocational pastors serving churches in Western Europe was also severely impacted as the businesses that fund their ministries were forced to close due to the COVID-19 pandemic.

The following hardship grants were made to pastors/missionaries during 2021:

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||| |---|---| |Romania|Macedonia| |£8,704 (5 Individuals)|£892 (1 Individual)| |France|Belguim| |£3,289 (3 Individuals)|£867 (1 Individual)| |Serbia|U.K| |£4,277 (2 Individuals)|£3,390 (5 Individuals)| |Turkey| |£818 (1 individual)|

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We have designated £15,000 for the relief of hardship amongst pastors during 2022.

GRACE TO YOU EUROPE

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2021

Resources for Pastors and students

Books to the value of £7,147 were gifted to pastors and seminarians in Czech Republic, Denmark, Finland, France, Germany, Netherlands, Portugal, Romania and the UK.

The Master’s Seminary Scholarship Fund

Grants totalling £8,534 were made to one individual currently preparing for pastoral ministry within Europe at the completion of his studies. We have designated £45,000 of our Reserves for the Scholarship Fund in 2022.

Individuals

The following quantities of free resources were provided to individuals during 2021:

6,364 Books 2,170 (hard) copies of Dynamic Resources Magazines

Preaching

During 2021 the Director was only able to undertake a limited number of weekend church preaching engagements on behalf of the ministry, due to the U.K Government’s imposition of national and international travelling restrictions. However, one ministry trip to a church in Normandy was made possible when British and French government restrictions were briefly alleviated in October.

Risk policy

The Trustees are responsible for the management of the charity and have identified risks specific to Grace to You Europe and implemented appropriate controls.

The key controls used by the charity include:

Identified risks

Damage to reputation

Trustees Indemnity Insurance policy, with sum assured of £250,000 to cover legal costs occurred in defending an accusation resulting in damage to the charity’s reputation.

A decline in funding and donations

We have a formal policy of maintaining sufficient capital at the bank to enable charitable activity to continue for a 12month period in the event of a decline in donations due to loss of reputation or economic austerity.

Catastrophic loss by fire

We have a Business Combined Insurance Policy underwritten by Ansvar Insurance which includes a 12- month business interruption sum assured of £200,000.

The office the charity occupies in Caxton House is rented and we are only required to give one month’s notice to our landlord if we wish to vacate the premises. There is a good range of alternative office accommodation available to rent in the Ashford area, some of which is owned by our current landlord, so we are confident that a catastrophic loss would only inconvenience the charity in the short-term.

Loss of data and Cyber Security

All data is being constantly monitored and backed-up by our off-site IT support company, MPR IT. Our website is hosted and maintained by our Grace to You colleagues in the U.S.A.

GRACE TO YOU EUROPE

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2021

COVID-19 Virus

A risk assessment was carried out at the commencement of the pandemic and staff followed U.K Government directives by working from home where that was possible or practical. However, rather than seeing a reduction in the work of the charity during the pandemic, the listenership of our daily radio broadcasts increased, and demand for our resources surged, making working from home for all members of staff impossible. The Director and Office Manager (who are a married couple) attended the office each day in-order to receive deliveries and to maintain shipment of resources to customers and supporters, whilst customer service staff worked from home answering telephone calls.

The Grace to You Europe office is large enough to enable 3 members of staff to work simultaneously, whilst maintaining social distancing of at least 2 meters. Protective face masks and hand sanitizer is provided for all members of staff whilst they are working in the office.

Based on the encouraging financial performance of the charity during 2021 we do not anticipate any decline in regular donor support or a decrease in the demand for our resources during 2022, which gives us confidence to proceed with the various objectives mentioned in this report, whilst adhering to our policy of maintaining sufficient financial reserves at the bank.

Financial review

Income for the year amounted to £541,658 (2020: £471,628) and expenditure amounted to £399,708 (2020: £392,452). As a result of the these movements, a surplus of £141,950 (2020: £79,176) was reported for the year. At 31 December 2021 funds amounted to £556,497 (2020: £414,547).

Reserves policy

The Trustees have adopted a policy which aims to ensure that there are adequate funds to meet the operating costs of the charity for a period of at least twelve months. Based on budgeted expenditure levels this would amount to £260,000 (2020: £260,000). At 31 December 2021, unrestricted reserves amounted to £295,031 (2020: £237,153).

At 31 December 2021 designated funds amounted to £230,000 (2020: £177,394). Further details can be found in note 10.

At 31 December 2021 restricted funds amounted to £31,466 (2020: Nil). Further details can be found in note 11.

Pay policy for key management personnel

The Trustees consider the Trustees and the senior management team comprise the key management personnel of the charity in charge of directing and controlling, running and operating the charity on a day to day basis. All Trustees give of their time freely and no Trustee received remuneration in the year. The pay of the senior staff is reviewed annually and normally increased in accordance with market rates.

Plans for the future

We will also continue to explore new opportunities for expanding the reach of Grace to You into Moldova, Serbia, Bulgaria, and Macedonia. We have received firm invitations from pastors in these countries to organise much needed Bible teaching conferences for church leaders.

The Trustees confirm that they have referred to the guidance contained in the Charity Commission’s general guidance on public benefit when reviewing the Trust’s aims and objectives and in planning future activities.

Structure

The company was incorporated as a limited company on 12 September 2012 and is governed by its Memorandum and Articles of Association. The company number is 8211924.

The company is also registered with the Charity Commission, number 1150277, from 21 December 2012.

GRACE TO YOU EUROPE

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2021

Governance and management

The Trustees who served during the year were: Mr Phillip Johnson Mr Andrew Curry Mr Christian Andresen Mr Jay Flowers

There shall not be less than three Trustees at any time but there is no maximum number. The existing Trustees may appoint further Trustees at their discretion. No person shall be eligible for appointment as a Trustee unless he/she can give full and unequivocal assent to the Grace to You Doctrinal Statement.

The Trustees meet formally on an annual basis but regularly and less formally at other times during the course of the year. The Trustees have designated Mr D Paul Mitchell, to be responsible for the day to day operation of the charity and he is assisted by a full-time Office Manager and one Customer Service Assistant.

Trustees' responsibilities

The Trustees (who are also directors for the purposes of company law) are responsible for preparing the Trustees’ Annual Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

The law applicable to charities in England & Wales requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources of the charity for that period. In preparing these financial statements, the Trustees are required to:

The Trustees are responsible for keeping proper accounting records that 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 Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed. 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.

Small company exemption

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

By order of the Board

……………………………..

Andrew Curry Trustee Date: 9 May 2022

GRACE TO YOU EUROPE

INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES

I report to the charity trustees on my examination of the accounts for the year ended 31 December 2021 which are set out on pages 8 to 16.

Responsibilities and basis of report

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

Having satisfied myself that the accounts of the company 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 report

Since the company’s gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a member of ICAEW, which is one of the listed bodies.

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;

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.

Name: Relevant professional qualification or body: Address:

Date:

M A Wilkes FCA

Azets Audit Services, 5th Floor, Ashford Commercial Quarter, 1 Dover Place, Ashford, Kent. TN23 1FB 7 June 2022

GRACE TO YOU EUROPE

STATEMENT OF FINANCIAL ACTIVITES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 DECEMBER 2021

Note
Income from:
Donations
Donations - Scholarship
Charitable activities
Sale of recordings and literature
Grace To You support in kind
Interest receivable
Other Income
Coronavirus Job Retention Scheme grant
Total income
Expenditure on:
Charitable activities
Total expenditure
2
Net movement in funds
Reconciliation of funds:
Fund balances at 1 January 2021
Fund balances at 31 December 2021		 £
£
£
-
298,675
298,675
40,000
-
40,000
-
45,954
45,954
-
156,991
156,991
-
38
38
-
-
-
-
-
-
40,000
501,658
541,658
8,534
391,174
399,708
8,534
391,174
399,708
31,466
110,484
141,950
-
414,547
414,547
31,466
525,031
556,497
2021
Total
Restricted
funds
Unrestricted
funds		 £
237,021
-
45,512
187,378
205
56
1,456
471,628
392,452
392,452
79,176
335,371
414,547
Unrestricted
funds
2020 Total

All transactions are derived from continuing activities. Comparative figures relate to unrestricted income and expenditure. All recognised gains or losses are included in the Statement of Financial Activities.

GRACE TO YOU EUROPE

BALANCE SHEET AS AT 31 DECEMBER 2021

Note
Fixed assets
Tangible assets
6
Current assets
Stocks
7
Debtors
8
Cash at bank and in hand
9
Net current assets
Net assets
Represented by
Designated funds
10
Restricted general fund
11
Unrestricted general fund
Creditors: Amounts falling due within one
year		 £
£
8,874
26,311
3,272
528,323
557,906
(10,283)
547,623
556,497
230,000
31,466
295,031
556,497
2021		 £
£
3,850
25,286
1,579
393,507
420,372
(9,675)
410,697
414,547
177,394
-
237,153
414,547
2020

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

Trustees' responsibilities

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

The financial statements were approved by the Board of Trustees on 9 May 2022 and were signed on its behalf by:

………………………

Trustee

Company No: 08211924

GRACE TO YOU EUROPE

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2021

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Note 2021 2020
£ £
Net cash flow from operating activities 12 142,143 90,094
Cash flow from investing activities
Payments to acquire tangible fixed assets (7,364) (4,548)
Interest received 38 205
Net cash flow from investing activities (7,326) (4,343)
Net increase in cash and cash equivalents 134,817 85,751
Cash and cash equivalents at 1 January 2021 393,507 307,756
Cash and cash equivalents at 31 December 2021 528,323 393,507
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GRACE TO YOU EUROPE

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

1 Accounting policies

1.1 Accounting convention

Grace to You Europe is a private limited company by guarantee and registered charity with the Charity Commission in the United Kingdom and a registered company in England and Wales. The address of the registered office is given in the charity information on page 1 of these financial statements. The nature of the charity’s operations and principal activities are the advancement of the Christian faith and such other charitable purposes as the Trustees shall from time to time determine.

The charity constitutes a public benefit entity as defined by FRS102. 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 (FRS102) issued on 16 July 2014 as amended by Bulletin 1, the Charities Act 2011, the Companies Act 2006 and UK Generally Accepted Practice as it applies from 1 January 2015.

The financial statements are prepared on a going concern basis under the historical cost convention, modified to include certain items at fair value. The financial statements are prepared in sterling which is the functional currency of the charity and rounded to the nearest £.

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

1.2 Funds accounting

Unrestricted income funds comprise those funds which the Trustees are free to use for any purpose in furtherance of the charitable objectives. Unrestricted funds include designated funds where the Trustees, at their discretion, have created a fund for a specific purpose.

1.3 Income recognition

All income is included in the Statement of Financial Activities (SoFA) when the charity is legally entitled to the income after any performance conditions have been met, the amount can be measured reliably and it is probable that the income will be received.

GRACE TO YOU EUROPE

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

1 Accounting policies

1.4

Expenditure recognition

All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. Expenditure is recognised where there is a legal or constructive obligation to make payments to third parties, it is probable that the settlement will be required and the amount of the obligation can be measured reliably. It is categorised under the following headings:

Irrecoverable VAT is charged as an expense against the activity for which expenditure arose.

1.5 Tangible fixed assets and depreciation

Tangible fixed assets are stated at cost (or deemed cost) or valuation less accumulated depreciation and accumulated impairment losses. Cost includes costs directly attributable to making the asset capable of operating as intended. Assets costing £200 or more will be capitalised. Depreciation is provided on all tangible fixed assets, at rates calculated to write off the cost, less estimated residual value, of each asset on a systematic basis over its expected useful life as follows:

Office Equipment 25% straight line Furniture and Fixtures 25% straight line Recording equipment 25% straight line

1.6 Stock

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing stock to its present location and condition. Cost is calculated using the first-in, first-out formula. Provision is made for damaged, obsolete and slow-moving stock where appropriate.

1.7 Debtors and creditors receivable / payable within one year

Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in expenditure.

1.8 Pension contributions

The charity operates a defined contribution plan for the benefit of its employees. Contributions are expensed as they become payable.

1.9 Tax

The charity is an exempt charity within the meaning of schedule 3 of the Charities Act 2011 and is considered to pass the tests set out in Paragraph 1 Schedule 6 Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes.

1.10 Going concern

The financial statements have been prepared on a going concern basis as the Trustees believe that no material uncertainties exist. The Trustees have considered the level of funds held and the expected level of income and expenditure for 12 months from authorising these financial statements. The budgeted income and expenditure is sufficient with the level of reserves for the charity to be able to continue as a going concern.

GRACE TO YOU EUROPE

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

1 Accounting policies

1.11 Judgements and key sources of estimation uncertainty

Accounting estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

Useful economic lives of tangible assets:

The annual depreciation charge for tangible assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are reassessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets. See note 6 for the carrying amount of the property plant and equipment, and note 1.5 for the useful economic lives for each class of assets.

Stock provision

Stock levels are reviewed on an annual basis for any slow moving or obsolete stock and provisions are made if appropriate based on the likelihood of future sales and physical condition of stock.

2.1
Analysis of expenditure
Charitable activities
Literature and recordings
Translated books (note 2.2)
Grants paid (note 2.3)
Scholarship
2.2
Translated books
Grants to institutions
FACLIA Publishing House of Oradea
2.3
3
Support costs
Insurance
Travelling and subsistence
Rent, community and utilities
Office expenses
Machine Maintenance
Computer support
Consultancy
Legal
Bank and credit card charges
Repairs and maintenance
Depreciation - office equipment
Accountancy - IT work
Loss on disposal of asset
Paypal fees
Independent examiner's fees
Grants paid amounting to £22,237 (2020:
respect of the charity's primary charitable
Total expenditure
Har Prin Cuvant		 2021
Direct
Support
Staff
Total
costs
costs
costs
Funds
£
£
£
£
134,013
46,970
128,256
309,239
59,698
-
-
59,698
22,237
-
-
22,237
8,534
-
-
8,534
224,482
46,970
128,256
399,708
Literature
and
Grants
paid
2021
Total
£
£
£
27,618
32,081
59,698
Literature
and
Grants
paid
2021
Total
£
£
£
1,536
-
1,917
5,990
-
6,901
6,192
-
11,598
5,706
-
3,643
1,350
2,010
-
5,140
13
-
13
134
#REF!
-
7,160
6,162
-
1,881
2,054
-
2,054
#REF!
-
3,188
286
(305)
#REF!
-
2,010
#REF!
-
46,970
£18,953) relates to grants paid to 18 individuals (2020: 16
objective.		 2020
Total
Funds
£
329,490
44,009
18,953
-
392,452
2020
Total
£
26,403
17,606
44,009
2020
Total
£
1,714
12,497
8,586
3,094
904
6,711
13
-
5,066
934
2,426
5,321
-
2,353
2,370
51,989
individuals) in

GRACE TO YOU EUROPE

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

4
Staff costs and key management personnel remuneration
Gross wages
Employer's NI
Employer's pension		 2021
£
105,783
6,721
15,752
128,256		 2020
£
93,005
4,180
14,372
111,557

The average number of employees during the year was 3 (2020: 5).

There are no employees with emoluments above £60,000 (2020: £60,000).

The Trustees consider the board of Trustees and the senior management team comprise the key management personnel of the charity in charge of directing and controlling, running and operating the charity on a day to day basis. As detailed above, no Trustees received remuneration during the period. The remuneration to the senior management team employees total £98,528 (2020: £87,793).

5 Trustees' remuneration and reimbursed expenses

The Trustees have not received any remuneration in the year (2020: None). During the year no Trustees had expenses reimbursed totalling (2020: None) for travel costs.

6 Tangible assets

Cost
As at 1 January 2021
Additions
Disposals
As at 31 December 2021
Depreciation
As at 1 January 2021
Charge for the year
Eliminated on disposal
As at 31 December 2021
Net book value
As at 31 December 2021
As at 31 December 2020
7
Stocks
Stock for re-sale
Stock of stationery
8
Debtors
Prepayments
Other debtors		 Office
Equipment
£
17,308
5,635
(7,225)
15,718
13,695
1,827
(6,939)
8,583
7,135
3,613		 Furniture &
Fixtures
£
1,021
-
-
1,021
784
82
-
866
155
237		 Recording
Equipment
£
3,628
1,729
(3,129)
2,228
3,628
145
(3,129)
644
1,584
-
2021
£
25,247
1,064
26,311
2021
£
2,285
987
3,272		 Total
£
21,957
7,364
(10,354)
18,967
18,107
2,054
(10,068)
10,093
8,874
3,850
2020
£
23,736
1,550
25,286
2020
£
974
605
1,579

GRACE TO YOU EUROPE

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

9
Creditors: Amounts falling due within one year
Accruals
Other creditors		 9
Creditors: Amounts falling due within one year
Accruals
Other creditors		 2021
2020
£
£
5,478
6,063
4,805
3,612
10,283
9,675
10
Designated funds - 2021
Book Translation projects in Eastern Europe
Pastoral Hardship Grants
Grace Reaches Out to Romania
Conferences in Romania
Support and develop Grace to You in Romania
The Master’s Seminary Scholarship Fund		 At 1
January
2021
New
designation
£
£
25,000
45,000
10,000
5,000
75,000
-
25,000
-
42,394
-
-
45,000		 Designation
released
At 31
December
2021
£
£
-
70,000
-
15,000
-
75,000
-
25,000
(42,394)
-
-
45,000
177,394
95,000		 (42,394)
230,000
Designated funds - 2020
Book Translation projects in Eastern Europe
Pastoral Hardship Grants
Grace Reaches Out to Romania
Conferences in Romania
Support and develop Grace to You in Romania		 At 1
January
2020
New
designation
£
£
-
25,000
-
10,000
-
75,000
-
25,000
60,000
-		 Designation
released
At 31
December
2020
£
£
-
25,000
-
10,000
-
75,000
-
25,000
(17,606)
42,394
60,000
135,000		 (17,606)
177,394
Book Translation projects in Eastern Europe
Pastoral Hardship Grants		 Several
literature
translation
projects
are
currently
being
undertaken with publication due during the Autumn of 2022.
To help alleviate financial hardship amongst Pastors in Eastern
Europe.

Grace Reaches Out to Romania The work out-put of the translators/sermon recording/technical team should increase significantly during 2022 so funds have been allocated to support this work.

Conferences in Romania

Support and develop Grace to You in Romania The Master’s Seminary Scholarship Fund

To organise conferences for Pastors in Romania and to cover the costs that will be incurred.

To help the ministry of Grace to You in Romania.

One individual is currently preparing for pastoral ministry within Europe at the completion of his studies.

GRACE TO YOU EUROPE

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

11
Restricted funds
The Master’s Seminary Scholarship Fund
Objectives of restricted funds		 As at 1
January
2021 Income Expenditure
Transfers
As at 31
December
2021
- 40,000 (8,534) - 31,466
- 40,000 (8,534) - 31,466

The Master’s Seminary Scholarship Fund One individual is currently preparing for pastoral ministry within Europe at the completion of his studies.

12 Reconciliation of net income to net cash flow from operating activities

Net Income/(Expenditure) for the year
Interest Receivable
Depreciation
Decrease/(Increase) in stock
(Increase)/Decrease in debtors
Incease/(decrease) in creditors
Profit/Loss on disposal of assets
Net Cash Flow from Operating Activities		 2021
2020
£
£
141,950 79,176
(38) (205)
2,054 2,426
(1,025) 29
(1,693) 6,798
609 1,869
286 -
142,143 90,094

13 Company status

The company is a company limited by guarantee and not having a share capital. Every member of the company undertakes to contribute in a winding up sum not exceeding £1 whilst they are a member, or within one year after ceasing to be a member, towards debts and liabilities contracted before ceasing to be a member.

14 Related party transactions

Mr. Phillip Johnson, Trustee, is also a Trustee of Grace to You USA. During the year, Grace to You USA donated support of £90,252 (2020: £114,961) have been included in the SOFA, the income side of this has been recorded as a donation and a similar entry for expenditure. In addition the charity also received donations from Grace to You USA amounting to £66,739 (2020: £72,417).

15 Financial commitments

During the year, the Trustees entered into a contract to translate the MacArthur Study Bible into the Romanian language. The contract will last for a period of 24 months at a monthly rate of £5,000 and will end on 31 December 2023.