## **GRACE TO YOU EUROPE**
**REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023**
**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 - 9
Balance Sheet 10
Notes to the Financial Statements 11 - 17
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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 2023**_
The Trustees present their report and examined financial statements of the charity for the year ended 31 December 2023. 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 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 in October 2019.
## **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 2023 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 £40,000 was made to FACLIA Publishing House of Oradea, towards the work of producing a Romanian edition of the _MacArthur Study Bible_ .
A total of £23,361 was granted to facilitate the translation, publication and free distribution of _various Spotlight on Scripture booklets_ into Danish.
A total of £15,530 was granted to facilitate the translation, publication, and free distribution of _various Spotlight on Scripture booklets_ and gospel tracts into Portuguese.
A total of £9,950 was granted to facilitate the translation, publication and free distribution of _various Spotlight on Scripture booklets_ into Polish, and the translation, sub titling and re-voicing of John McArthur's sermons on YouTube.
A total of £2,664 was granted to facilitate the translation, publication, and free distribution of _various Spotlight on Scripture booklets_ into Serbian.
A total of £1,731 was granted to facilitate the translation and publication of the book titled _Saved Without a Doubt_ into Hungarian for the Hungarian Baptist churches in Romania.
We have designated £20,000 to fund the translation and printing of books and booklets by John McArthur during 2024.
An additional £100,000 from our reserves has been specifically allocated for the printing and publicity of the Romanian translation of the MacArthur Study Bible during 2024.
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## **GRACE TO YOU EUROPE**
## **REPORT OF THE TRUSTEES** _**FOR THE YEAR ENDED 31 DECEMBER 2023**_
## **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 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 (GRO) 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.
For 2024 we have designated £35,000 for the funding of the GRO to Romania project.
## **Conferences**
During 2023 we held conferences in the U.K, Faroe Islands, France, Romania, Bosnia, Albania, Macedonia and Serbia at a cost of £51,345.
We have scheduled conferences during 2024 for Macedonia, Romania, Moldova and Vienna.
## **Prison ministry**
Throughout the year we were contacted by the inmates of 6 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 £107 to individual prisoners and £13 for the chaplains of Christian Prison Resourcing.
## **Hardship grants for Pastors**
Many, if not most, pastors in Eastern Europe (and in some cases in Western Europe) receive very modest salaries, which are rarely 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.
The following hardship grants were made to pastors/missionaries during 2023:
**----- Start of picture text -----**
|||
|---|---|
|Greece/Cyprus|Romania|
|£4,476 (1 Individual)|£3,653 (3 individuals & 1 orphanage)|
|U.K|Serbia|
|£3,400 (2 individuals & 2 organisations)|£1,776 (1 individual)|
|Madeira|
|£300 (1 individual)|
**----- End of picture text -----**
We have designated £15,000 for the relief of hardship amongst pastors during 2024.
## **Resources for Pastors and students**
1,232 Books to the value of £7,215 were gifted to pastors and seminarians in Cyprus, Denmark, Faroe Isles, France, Greece, Hungary, Jersey, Madeira, the Netherlands, Northern Ireland, Portugal, Romania, and the UK.
- 3 -
## **GRACE TO YOU EUROPE**
## **REPORT OF THE TRUSTEES** _**FOR THE YEAR ENDED 31 DECEMBER 2023**_
## **The Master’s Seminary Scholarship Fund**
Grants totalling £34,592 were made to three individuals currently studying at The Master’s Seminary in preparation for pastoral ministry within Europe at the completion of their studies. We have designated £12,000 for the Scholarship Fund in 2024.
## **Individuals**
The following quantities of free resources were provided to individuals during 2023:
5,283 Books 2,400 (hard) copies of Dynamic Resources Magazines 344 CDs/DVDs/MP4s
## **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:
- Formal written agendas for all Board activity
- Regular formal and informal discussions between the trustees and staff
- Comprehensive planning, budgeting, and financial forecasting
- Established organisational structure and lines of reporting
- Formal written policies
- Clear authorisation and approval levels for expenditure
- Professional examination and presentation of annual accounts
## **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.
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## **GRACE TO YOU EUROPE**
## **REPORT OF THE TRUSTEES** _**FOR THE YEAR ENDED 31 DECEMBER 2023**_
## **Financial review**
Income for the year amounted to £449,860 (2022: £482,908) and expenditure amounted to £586,967 (2022: £555,226). As a result of the these movements, a deficit of £137,107 (2022: £72,318) was reported for the year. At 31 December 2023 funds amounted to £347,072 (2022: £484,179).
## **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 £185,000 (2022: £190,000). At 31 December 2023, unrestricted reserves amounted to £150,212 (2022: £94,727).
At 31 December 2023 designated funds amounted to £182,000 (2022: £360,000). Further details can be found in note 10.
At 31 December 2023 restricted funds amounted to £14,860 (2022: £29,452). 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**
Our main focus during 2024 will be the printing of the Romanian translation of the MacArthur Study Bible and its distribution throughout Romania and Moldova, this will include a series of conferences specifically organised for pastors and other church leaders.
## **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.
## **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.
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## **GRACE TO YOU EUROPE**
## **REPORT OF THE TRUSTEES** _**FOR THE YEAR ENDED 31 DECEMBER 2023**_
## **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:
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles in the Charities SORP 2015 (FRS 102);
- make judgements and estimates that are reasonable and prudent;
- state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements;
- prepare the financial statements on the going concern basis unless it is inappropriate to assume that the charity will continue in business.
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
……………………………..
Trustee Date: 14 May 2024
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## **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 2023 which are set out on pages 8 to 17.
## **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;
- 1 accounting records were not kept in respect of the company 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 requirements 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.
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 28 May 2024**
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## **GRACE TO YOU EUROPE**
## **STATEMENT OF FINANCIAL ACTIVITES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 DECEMBER 2023**
|**Note**
**Income from:**
Donations and legacies
Donations - Scholarship
Charitable activities
Sale of recordings and literature
Grace To You support in kind
Interest receivable
**Total income**
**Expenditure on:**
Charitable activities
**Total expenditure**
**2**
**Net movement in funds**
**Reconciliation of funds:**
Fund balances at 1 January 2023
**Fund balances at 31 December 2023**|**£**
**£**
**£**
8,341
208,659
217,000
20,000
-
20,000
**-**
36,035
36,035
**-**
170,229
170,229
**-**
6,596
6,596
28,341
421,519
449,860
42,933
544,034
586,967
42,933
544,034
586,967
(14,592)
(122,515)
(137,107)
29,452
454,727
484,179
14,860
332,212
347,072
**2023**
**Total**
**Restricted**
**funds**
**Unrestricted**
**funds**|**£**
248,369
30,000
38,325
164,619
1,595
482,908
555,226
555,226
(72,318)
556,497
484,179
**2022**
**Total**|
|---|---|---|
All transactions are derived from continuing activities. All recognised gains or losses are included in the Statement of Financial Activities.
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## **GRACE TO YOU EUROPE**
## **STATEMENT OF FINANCIAL ACTIVITES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 DECEMBER 2023**
|**Note**
**Income from:**
Donations
Donations - Scholarship
Charitable activities
Sale of recordings and literature
Grace To You support in kind
Interest receivable
**Total income**
**Expenditure on:**
Charitable activities
**Total expenditure**
**2**
**Net movement in funds**
**Reconciliation of funds:**
Fund balances at 1 January 2022
**Fund balances at 31 December 2022**
**Comparative information**|**£**
**£**
**£**
8,000
240,369
248,369
30,000
-
30,000
**-**
38,325
38,325
**-**
164,619
164,619
**-**
1,595
1,595
38,000
444,908
482,908
40,014
515,212
555,226
40,014
515,212
555,226
(2,014)
(70,304)
(72,318)
31,466
525,031
556,497
29,452
454,727
484,179
**Restricted**
**funds**
**Unrestricted**
**funds**
**2022**
**Total**|
|---|---|
All transactions are derived from continuing activities. All recognised gains or losses are included in the Statement of Financial Activities.
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## **GRACE TO YOU EUROPE**
## **BALANCE SHEET** _**AS AT 31 DECEMBER 2023**_
|**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 fund
**11**
Unrestricted fund
**Creditors: Amounts falling due within one**
**year**|**£**
**£**
6,265
32,075
3,083
323,294
358,452
(17,645)
340,807
347,072
182,000
14,860
150,212
347,072
**2023**|**£**
**£**
8,259
31,335
12,528
443,446
487,309
(11,389)
475,920
484,179
360,000
29,452
94,727
484,179
**2022**|
|---|---|---|
For the financial year ended 31 December 2023 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
## Trustees' responsibilities
- The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476;
- - The Trustees acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and preparation of financial statements.
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 14 May 2024 and were signed on its behalf by:
………………………
## Trustee
## **Company No: 08211924**
- 10 -
## **GRACE TO YOU EUROPE**
## **NOTES TO THE FINANCIAL STATEMENTS** _**FOR THE YEAR ENDED 31 DECEMBER 2023**_
## **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 issued in October 2019, the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102), the Charities Act 2011, the Companies Act 2006 and UK Generally Accepted Accounting Practice.
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.
- Voluntary income including donations and gifts is included in the Statement of Financial Activities when receivable.
- Income from sale of recordings and literature represents the amounts received from the sale of goods in respect of the charity's objectives.
- Donated services are recognised in income at their fair value when their economic benefit is probable, it can be measured reliably and the charity has control over the item. Fair value is determined on the basis of the value of the gift to the charity. For example the amount the charity would be willing to pay in the open market for such facilities and services. A corresponding amount is recognised in expenditure.
- Investment income is earned through holding assets for investment purposes such as shares and property. It includes dividends and interest. Interest income is recognised using the effective interest method and dividend income is recognised as the charity’s right to receive payment is established.
- Grace to You Support income is recognised when receivable. This can be in the form of donated services or actual donations.
- 11 -
## **GRACE TO YOU EUROPE**
## **NOTES TO THE FINANCIAL STATEMENTS** _**FOR THE YEAR ENDED 31 DECEMBER 2023**_
## **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:
- Expenditure on charitable activities comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes both costs allocated directly to such activities and those costs of an indirect nature necessary to support them
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.
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**GRACE TO YOU EUROPE**
## **NOTES TO THE FINANCIAL STATEMENTS** _**FOR THE YEAR ENDED 31 DECEMBER 2023**_
## **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)
Conferences
Macedonian project
Scholarship
**2.2**
**Translated books**
**Grants to institutions**
FACLIA Publishing House of Oradea
**Grants to individuals**
Other
**Total expenditure**
Har Prin Cuvant|**2023**
**Direct**
**Support**
**Staff**
**Total**
**costs**
**costs**
**costs**
**Funds**
**£**
**£**
**£**
**£**
138,276
74,752
131,317
344,345
134,016
-
-
134,016
13,587
-
-
13,587
51,345
-
-
51,345
9,082
-
-
9,082
34,592
-
-
34,592
380,898
74,752
131,317
586,967
**Literature**
**Grants**
**2023**
**£**
**£**
**£**
40,000
14,969
79,047
134,016|**2022**
**Total**
**Funds**
**£**
324,692
169,145
26,583
-
-
34,806
555,226
**2022**
**£**
80,000
30,625
58,520
169,145|
|---|---|---|
**2.3** Grants paid amounting to £13,587 (2022: £26,583) relates to grants paid to 8 individuals, 2 organisations (Evangelical Times £100 and Barnabas Aid £500) and 1 orphanage (2022: 14 individuals) in respect of the charity's primary charitable objective.
|**Support costs**
**Literature**
**and**
**Grants**
**paid**
**2023**
**Total**
**£**
**£**
**£**
Insurance
1,486
-
2,100
Travelling, subsistence and conferences
22,877
-
24,823
Rent, community and utilities
6,284
-
10,961
Office expenses
8,740
-
5,295
Machine Maintenance
1,162
Computer support (MPR-IT)
2,550
-
3,883
Consultancy
13
-
1,000
Bank and credit card charges
#REF!
-
5,722
Repairs and maintenance
5,023
-
475
Depreciation - office equipment
2,001
-
1,994
Accounting support (Azets)
#REF!
-
12,364
Paypal fees
(19)
Accountancy fees
1,362
Independent examiner's fees
#REF!
-
3,630
#REF!
-
74,752|**2022**
**Total**
**£**
2,139
25,664
9,573
5,604
1,835
3,953
13
6,150
1,452
2,001
3,935
12
-
2,550
64,881|
|---|---|
## **3 Support costs**
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## **GRACE TO YOU EUROPE**
## **NOTES TO THE FINANCIAL STATEMENTS** _**FOR THE YEAR ENDED 31 DECEMBER 2023**_
|**4**
**Staff costs and key management personnel remuneration**
Gross wages
Employer's NI
Employer's pension|**2023**
**£**
110,207
6,446
14,664
131,317|**2022**
**£**
102,295
5,930
14,606
122,831|
|---|---|---|
The average number of employees during the year was 3 (2022: 3).
There are no employees with emoluments above £60,000 (2022: £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 £103,074 (2022: £96,707).
## **5 Trustees' remuneration and reimbursed expenses**
The Trustees have not received any remuneration in the year (2022: None). During the year one Trustee had expenses reimbursed totalling £866 (2022: £1,772) for travel costs.
## **6 Tangible assets**
|**Cost**
As at 1 January 2023 and at 31 December
2023
**Depreciation**
As at 1 January 2023
Charge for the year
As at 31 December 2023
**Net book value**
As at 31 December 2023
As at 31 December 2022
**7**
**Stocks**
Stock for re-sale
Stock of stationery
**8**
**Debtors**
Trade debtors
Prepayments
Other debtors|**Office**
**Equipment**
**£**
17,104
10,358
1,777
12,135
4,969
6,746|**Furniture &**
**Fixtures**
**£**
1,021
948
73
1,021
-
73|**Recording**
**Equipment**
**£**
2,228
788
144
932
1,296
1,440
**2023**
**£**
30,882
1,193
32,075
**2023**
**£**
66
2,488
529
3,083|**Total**
**£**
20,353
12,094
1,994
14,088
6,265
8,259
**2022**
**£**
30,175
1,160
31,335
**2022**
**£**
-
11,815
713
12,528|
|---|---|---|---|---|
- 14 -
## **GRACE TO YOU EUROPE**
## **NOTES TO THE FINANCIAL STATEMENTS** _**FOR THE YEAR ENDED 31 DECEMBER 2023**_
|**9**
**Creditors: Amounts falling due within one year**
Accruals
Other creditors
**10**
**Designated funds - 2023**
Book Translation projects in Eastern Europe
Pastoral Hardship Grants
Grace Reaches Out to Romania
Translation and printing of books and booklets by
John MacArthur
2023 Conferences
The Master’s Seminary Scholarship Fund
**Designated funds - 2022**
Book Translation projects in Eastern Europe
Pastoral Hardship Grants
Grace Reaches Out to Romania
Conferences in Romania
Translation and printing of books and booklets by
John MacArthur
2023 Conferences
The Master’s Seminary Scholarship Fund|**At 1**
**January**
**2023**
**New**
**designation**
**£**
**£**
140,000
-
10,000
5,000
60,000
-
58,000
-
50,000
-
42,000
-
360,000
5,000
**At 1**
**January**
**2022**
**New**
**designation**
**£**
**£**
70,000
70,000
15,000
-
75,000
-
25,000
-
-
58,000
-
50,000
45,000
-
230,000
178,000|**2023**
**£**
10,841
6,804
17,645
**Designation**
**released**
**£**
(40,000)
-
(25,000)
(38,000)
(50,000)
(30,000)
(183,000)
**Designation**
**released**
**£**
-
(5,000)
(15,000)
(25,000)
-
-
(3,000)
(48,000)|**2022**
**£**
6,371
5,018
11,389
**At 31**
**December**
**2023**
**£**
100,000
15,000
35,000
20,000
-
12,000
182,000
**At 31**
**December**
**2022**
**£**
140,000
10,000
60,000
-
58,000
50,000
42,000
360,000|
|---|---|---|---|
Book Translation projects in Eastern Europe
Funds allocated to complete the translation and printing of the MacArthur Study Bible into Romanian during 2024.
Pastoral Hardship Grants
To help alleviate financial hardship amongst Pastors in Europe.
Grace Reaches Out to Romania
The work out-put of the translators / sermon-recording / technical team should increase significantly during the coming year, so funds have been allocated accordingly.
Conferences in Romania
To organise conferences for Pastors in Romania and to cover the costs that will be incurred.
The Master’s Seminary Scholarship Fund
Two individuals are currently preparing for pastoral ministry within Europe.
Translation and printing of books and booklets by John MacArthur
Translation projects in 2023 were carried out in Serbia, Macedonia, Madeira, Poland and Denmark.
2023 Conferences
The countries in which we plan to hold conferences in 2023 are the Faroe Islands, France, Romania, Bosnia, Albania, Macedonia Serbia and the UK.
- 15 -
## **GRACE TO YOU EUROPE**
## **NOTES TO THE FINANCIAL STATEMENTS** _**FOR THE YEAR ENDED 31 DECEMBER 2023**_
|**11**
**Restricted funds - 2023**
The Master’s Seminary Scholarship Fund
Romanian Study Bible
Macedonia Project
Other
**Restricted funds - 2022**
The Master’s Seminary Scholarship Fund
Romanian Study Bible
Conferences in Europe
Hardship grant
**Objectives of restricted funds**
**The Master’s Seminary Scholarship Fund**|**As at 1**
**January**
**2023 Income Expenditure**
**Transfers**
**As at 31**
**December**
**2023**
29,452 20,000 (34,592) - 14,860
- 10 (10) - -
- 7,081 (7,081) - -
- 1,250 (1,250) - -
29,452 28,341 (42,933) - 14,860
**As at 1**
**January**
**2022 Income Expenditure**
**Transfers**
**As at 31**
**December**
**2022**
31,466 30,000 (32,014) - 29,452
- 2,000 (2,000) - -
- 5,000 (5,000) - -
- 1,000 (1,000) - -
31,466 38,000 (40,014) - 29,452
One individual is currently preparing for pastoral ministry within
Europe at the completion of his studies.|
|---|---|
**Romanian Study Bible**
The purpose for the Romanian Study Bible conferences which will be held in 2024 is to launch the new Romanian MacArthur Study Bible which should be completed by then.
**Macedonia project**
**Conferences in Europe**
This project is supporting the organisation of conferences in Macedonia and the translation of booklets by John MacArthur into the Macedonian language.
To enable Pastors to attend who otherwise would be unable to afford to do so.
**Hardship grant**
This fund was to support Pastors who were experiencing financial difficulties.
## **Other**
These are small donations received that relate to specific purpose.
|**12**
**Analysis of net assets between funds**
**2023**
Unrestricted funds
Restricted funds
**2022**
Unrestricted funds
Restricted funds|**Tangible**
**Net current**
**fixed assets**
**assets**
**Total**
**£**
**£**
**£**
6,265 325,947 332,212
- 14,860 14,860
6,265 340,807 347,072
**Tangible**
**Net current**
**fixed assets**
**assets**
**Total**
**£**
**£**
**£**
8,259 446,468 454,727
- 29,452 29,452
8,259 475,920 484,179|
|---|---|
## **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.
- 16 -
## **GRACE TO YOU EUROPE**
## **NOTES TO THE FINANCIAL STATEMENTS** _**FOR THE YEAR ENDED 31 DECEMBER 2023**_
## **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 £96,290 (2022: £90,991) 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 £73,939 (2022: £73,628).
## **15 Financial commitments**
During 2021, 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 ended on 31 December 2023.
- 17 -
## **GRACE TO YOU EUROPE**
## **INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 DECEMBER 2023**
**----- Start of picture text -----**
2023 2022
£ £ £ £
Trading Income
GTY 36,035 38,325
36,035 38,325
Cost of Sales
Opening stock 31,335 26,311
PR 4,845 4,488
Books 71,436 69,258
CD/DVD/Audio/Video 3,157 4,604
110,773 104,661
Closing stock (32,075) (31,335)
(78,698) (73,326)
(42,663) (35,001)
Other direct charitable activity costs
Grants payable 13,587 26,583
Translated books 93,235 106,503
Conferences 51,345 -
Macedonian project 9,082 -
Scholarship 34,592 34,806
Romanian 40,781 62,642
(242,622) (230,534)
Trading Expenses
Postage and packaging 19,803 15,229
Telephone and internet 4,015 3,336
Conferences and exhibitions 10,259 13,836
(34,077) (32,401)
Donations re: Free Offers 41,933 41,934
Cost re: Free Offers (32,587) (31,253)
9,346 10,681
(310,016) (287,255)
Other Income
Donations 195,067 236,435
Grace To You Support 170,229 164,619
Interest Receivable 6,596 1,595
371,892 402,649
61,876 115,394
Administration Expenses
Wages 110,207 102,295
Social security 6,446 5,930
Pension contributions 14,664 14,606
Insurance 2,100 2,139
Travelling and subsistence 17,739 25,664
Rent, community and utilities 10,961 9,573
Office expenses 5,293 5,604
Machine maintenance 1,162 1,835
Computer support (MPR-IT) 3,883 3,953
Consultancy 1,000 13
Bank and credit card charges 5,722 6,150
Repairs and maintenance 475 1,413
Depreciation - office equipment 1,994 2,001
Accounting support (Azets) 12,364 3,935
Independent examiner's fees 3,630 2,550
Professional fees 1,362 -
Premises expenses - 39
Paypal charges (19) 12
(198,983) (187,712)
Net (deficit) for the year (137,107) (72,318)
**----- End of picture text -----**
- Appendix 1 -