## **Anglican Alliance**
(A Charitable Company limited by guarantee)
## **Report and Financial Statements**
**for the year to**
**31st December 2020**
Registered Charity No. 1151992 Company No. 08345096
## **Anglican Alliance Report and Financial Statements for the year to 31st December 2020**
## **Contents**
Reference and Administrative details of the Charity, its Trustees and Advisors.................................1
Officers of the Anglican Alliance..........................................................................................................2 Annual Report of the Trustees.............................................................................................................3 Independent Auditor’s Report to the Members of the Anglican Alliance..............................................9 Statement of Financial Activities.........................................................................................................13 Balance Sheet.....................................................................................................................................14 Notes to the Financial Statements......................................................................................................15
## **Anglican Alliance**
## **Reference and administrative details of the charity, its trustees and advisors**
## **Constitution**
The Anglican Alliance is a charity registered in England and Wales, registration number 1151992 and a company limited by guarantee, registration number 08345096. It was established by constitution subscribed to on 21 December 2012. The charitable company started its activities on 1 April 2013 upon transfer of the net liabilities from The Anglican Consultative Council (The ACC).
## **Trustees**
Those acting as Trustees during the year to 31 December 2020 and to the date of signing this report were the following:
The Most Revd Albert Chama (Chair) The Rt Revd Alastair Redfern (Vice Chair) The Rt Revd Andrew Chan (appointed 8 December 2020) The Revd John Deane (resigned 8 September 2020) The Rt Revd Hemen Halder (appointed 8 December 2020) Mr Michael Hart The Revd Gillian Hoyer The Most Revd Dr Josiah Idowu-Fearon Canon Andrew Khoo Ms Lina Magallanes (appointed 8 December 2020) Canon Delene Melissa Mark (resigned 8 September 2020) The Most Revd Julio Murray Ms Abagail Nelson The Rt Revd Humphrey Peters (resigned 8 September 2020)
1
## **Officers of the Anglican Alliance**
|**Chair**|The Most Revd Albert Chama|
|---|---|
|**Vice Chair**|The Rt Revd Alastair Redfern|
|**Chair of the**|The Rt Revd Alastair Redfern|
|**Finance and General Purposes**||
|**Committee**||
|**Treasurer**|Mr Michael Hart|
|**Executive Director**|The Revd Canon Rachel Carnegie|
|**Registered Office**|St Andrew’s House|
||16 Tavistock Crescent|
||Westbourne Park|
||London W11 1AP, UK|
|**Auditors**|Mazars LLP|
||Chartered Accountants & Statutory Auditors|
||6 Sutton Plaza|
||Sutton Court Road|
||Sutton, Surrey, SM1 4FS, UK|
|**Solicitors**|Winckworth Sherwood|
||16 Beaumont Street|
||Oxford OX1 2LX, UK|
|**Bankers**|The Royal Bank of Scotland Plc, London, UK|
||49 Charing Cross, London, SW1A 2DX, UK|
## **Annual Report of the Trustees**
The Trustees are pleased to present their Report and Financial Statements for the year to 31 December 2020.
## **Structure, Governance and Management**
The Anglican Alliance is based at St Andrew’s House, London. The Executive Director reports on progress to a Board of Trustees (who are also Directors for the purposes of Company Law) that meets at least three times per year. The Board delegates some responsibilities to a Finance and General Purposes Committee that also meets at least three times per year. The Audit and Risk Committee also meets annually. Procedures have been put in place to ensure that the Trustees are made aware of their responsibilities at their first meeting. The Trustees consider the Board of Trustees and the Executive Director 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.
## **Public Benefit**
The object of the Charity is to benefit the public by bringing together the development, relief and advocacy work of the Churches of the Anglican Communion worldwide and the agencies associated with them grounded in Christian faith to support the poor and oppressed people of the world.
In preparing this report the Trustees have complied with their duty to have due regard to the public benefit guidance published by the Charity Commission.
## **Risk Management**
During the year the Board of Trustees reviewed the risk register. Procedures have been introduced to manage and reduce the risks identified, and further reviews take place regularly. An Audit and Risk Sub-committee meets once per year and on an ad hoc basis as required.
The charity concluded the 2019 year with a modest surplus in unrestricted funds. The Trustees have continued this focus into 2020, and budgets include plans to further increase the surplus to build a working reserve.
The uncertainty relating to the COVID-19 pandemic and impact on some of the organisation’s core funders has affected some income flows, but at the same time the Anglican Alliance’s role in responding to the pandemic has also attracted new funders. While funding for 2021 is secure, the Executive Director and Board continue to work hard to establish a viable set of funding streams through 2022 and beyond. The main exposure relates to foreign exchange movements, as some income and costs, including overseas salaries and activities are denominated in US Dollars. This risk is managed with prudent expenditure plans to allow for currency fluctuations, and regular reviews to ensure action is taken to reduce expenditure in the event of unforeseen cost increase or income reduction. Brexit and the United Kingdom leaving the European Union has not so far and is not expected to present specific significant risks to the Charity.
In April 2021 the Board reviewed the resilience of the Anglican Alliance operationally and financially in relation to the risks and consequences relating to the COVID-19 pandemic. The most significant enhanced and additional risks continue in two areas. The first relates to the operational challenges, with lockdowns and travel restrictions making international visits, in-person training and consultations impossible at this time. These challenges have been largely mitigated by moving the Alliance’s global operations online, which has worked successfully and has indeed added to the global connectedness and operational value of the organisation. The second risk relates to potential pressures on income streams from 2022 onwards if the slow exit from the pandemic brings a global recession or financial
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crisis. This is being mitigated in part by the reduced costs resulting from the new online operating model, which will remain significantly in place post-pandemic. The COVID-19 pandemic has also demonstrated the added value of the Anglican Alliance and in that context the Executive Director and Trustees are working to secure full funding for the coming years. The Board will review the financial projections later this year to make the necessary budgetary provisions for 2022.
## **Objectives, Achievements and Activities**
The Anglican Alliance brings together the Anglican family of churches and agencies to work for a world free of poverty, inequality and injustice, to raise the voices of the vulnerable, to reconcile those in conflict, and to safeguard the earth. The role of the Anglican Alliance is to connect and share capacity, skills and resources across the worldwide Anglican Communion to support its work in development, relief and advocacy.
In 2020 the income sustained the planned programme of activities, and supported the increasing demand for the Anglican Alliance’s services due to the ongoing pandemic. The Anglican Alliance is able to leverage outcomes beyond is modest resources as it brings together the human capacities, church assets and financial means of Anglican churches and agencies across the world, sharing resources and expertise in collaborative effort.
In 2020, significant outcomes were achieved across the three pillars of the Alliance’s work: relief, development and advocacy. The pandemic required the organisation to reorient its planned activities in early 2020 to focus its resources on supporting the worldwide Anglican Communion’s response to Covid-19. Based on the on-going strategic plan, the Alliance developed a response framework for responding to the pandemic, guided by a global Covid-19 Task Force which the Alliance established in March 2020 and is still ongoing.
In the **Relief** pillar, the Anglican Alliance adds value by building disaster resilience and coordinating humanitarian support to Anglican provinces and dioceses responding to humanitarian crises. It works closely with a group of agencies and churches to connect for joint support so that the local church can have a simplified process for applications, communications and reporting. In early 2020 the Alliance reoriented its staff, resources and networks to respond to the Covid-19 crisis.
## **Covid-19 Response**
- Connecting, equipping and encouraging the Anglican Communion’s churches and agencies in their response to the pandemic.
- Forming a global Covid-19 task force meeting at least twice per month to provide a global overview of the pandemic, define emerging issues and guide the Alliance’s response.
- Liaising with the World Health Organisation, advising on guidance to faith-based organisations.
- Developing an online Covid-19 resource hub with facts on the pandemic and guidance on how the churches can structure their own activities safely, continue caring for the vulnerable and advocate for equal access to health resources and vaccines.
- Convening regular global and regional online consultations to share learning on the pandemic and how the churches are responding, including thematic consultations on issues such as migration and human trafficking during the pandemic.
- Developing an advocacy position and partnerships on global vaccine equity and tackling vaccine hesitancy and mis-information, working with WHO.
- Supporting the development of the Anglican Health and Community Network, to leverage further health expertise in the Communion.
- Producing a report on the Communion pandemic response, released in five languages.
## **Other areas of activity on Relief and Resilience**
- Launching an online Resilience Course in collaboration with Episcopal Relief & Development, supporting churches to develop capacity in disaster preparedness and resilience. The 10-month course has over 140 participants from 42 countries and runs in 6 languages.
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- Convening Communion-wide calls and accompanying churches in Mozambique, South Sudan, DRC, Fiji, Zimbabwe and elsewhere, facing conflict, climate disasters and other crises concurrent with the pandemic. Seeking to broker support and convening roundtables with global partners.
In the **Development** pillar, the Anglican Alliance adds value by sustaining a mechanism for sharing learning and skills and building joint strategic initiatives across the Anglican Communion. It does not fund projects, but works to connect, leverage assets and build coalitions. Highlights in 2020 included:
## **Environmental and Climate Justice**
- Major communication activities, with in-depth website reflections and development of our online resource hub. Supporting planning on this theme towards the Lambeth Conference 2022.
## **Safe Migration and Human Trafficking**
- Convening a regional consultation on safe migration into the Gulf and regular online meetings of the regional communities of practice in Asia, the Middle East and Africa. Joint planning with churches in Africa and the Middle East to develop strategies on preventing human trafficking.
- Support to the Communion online learning group on migration issues. Working with churches to highlight the particular vulnerability of migrants, especially undocumented migrants, in the pandemic. Supporting planning towards the Lambeth Conference to equip the Communion leadership on issues of migration and human trafficking.
## **Asset-Based Church and Community Transformation**
- Convening regular online trainings with the Asia Community of Practice. Supporting adaptation of the approach into the Middle East context. Integrating asset-based principles into all areas of the Anglican Alliance’s work.
- Finalising a resource on Contextual Bible Studies, reflecting on the Anglican Marks of Mission and the UN 2030 Global Goals.
In the **Advocacy** pillar, the Anglican Alliance adds value by helping to equip, connect and catalyse advocacy initiatives in the Communion, supporting Anglican leaders to speak out alongside people from affected communities. It also helps to broker and build coalitions with ecumenical and other partners for joint advocacy at global levels. Highlights in 2020 included:
## **Covid-19**
Tracking equity issues in the pandemic global response, especially on vaccine access. Working with WHO and the Anglican Health & Community Network to equip Anglican leadership to speak out on global vaccine equity.
## **Environmental justice**
Supporting planning for the Lambeth Conference in 2020, postponed to 2022, on equipping the bishops on environmental/climate issues and for advocacy events. Supporting the Anglican Indigenous Network and Anglican Communion Environment Network in promoting their videos: _Prophetic Indigenous Voices on Climate Justice_ .
## **Current situation of the Alliance**
The Anglican Alliance has now been operating for over ten years. During this decade, it has established a strong reputation for connecting and equipping the worldwide churches and agencies to bring about transformational change in the lives of the poor and vulnerable. It also has an important convening function within the Anglican Communion.
The experienced Executive Director has been in post since 2014 leading a small secretariat in the UK and a team of regional facilitators around the world, with a Senior Adviser based in Africa. Since the
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start of the pandemic, staff have been working from home, but have remained closely connected online, potentially enabling even more effective global teamwork. The staff numbers are small, but the range of active participants in the Anglican Alliance’s activities, from churches and agencies around the worldwide Communion, is significant and ever growing. Its regional facilitators play a key role, along with the UK-based Secretariat, in gathering forums to guide and support collaborative learning and action.
The Charity has been able to conclude the 2020 financial year with a further small surplus in unrestricted funds as it continues to build up modest reserves.
Having been born out of the Lambeth Conference 2008, the Anglican Alliance’s mandate will be reviewed and refreshed through the Lambeth Conference now scheduled for mid-2022 and the next Anglican Consultative Council in 2023.
As a platform for the development, relief and advocacy initiatives of the worldwide Anglican Communion, the Anglican Alliance serves to connect this work at a global level with a range of external partners, including other faith based agencies and UN bodies. This adds value by building relationships and trust which help to broker partnerships for churches at the country level.
## **Donations in Kind**
Reference has been made in this report to contributions from various quarters to the work of the Anglican Alliance. Some contributions have been financial, others in the form of the provision of personnel or facilities, as Anglican churches, charities and agencies around the world participate in Anglican Alliance activities. Among these donations in kind is office space for the Anglican Alliance at the Anglican Communion Office, and donated staff time from employees of the Anglican Consultative Council.
## **Grant-making Policies**
The Anglican Alliance administers grants in accordance with the restricted purposes for which the funds were originally donated. Grants are paid as soon as the applications have been received and approved. However, the Anglican Alliance is not primarily a grant-making body and makes very few grants.
## **Financial Report for the year to 31 December 2020**
The activities of the Anglican Alliance began as a restricted fund of The Anglican Consultative Council (charity number 1137273) in 2011. The Anglican Alliance was incorporated as a company limited by guarantee on 2 January 2013 and registered as a charity on 10 May 2013. The first Report and Financial Statements of the new charitable company were for the period ended 31 January 2014. This, the seventh Report and Financial Statements are for the year ended 31 December 2020.
The financial statements comply with the Charities Act 2011 the Companies Act 2006, the Memorandum and Articles of Association, and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard (FRS102) (effective 1 January 2019).
The _Balance Sheet_ sets out the overall financial position of the Anglican Alliance at 31 December 2020. It should be noted that each fund category is dealt with in a separate column, which is referenced to notes in the accounts. The total fund balances at the end of 2020 (Reserves) were £190,158 (2019: £183,484).
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Cash balances were £194,980 (2019: £187,318) as set out in the _Statement of Cash Flows_ which accompanies these financial statements (Note 9). This reflected the fact that income exceeded expenditure during the year.
The main summary of financial transactions through the year is the _Statement of Financial Activities_ or _SOFA_ . This statement includes income and expenditure, transfers between the different funds and gains or losses on the values of investments. Separate supporting statements, set out in the same SOFA format, show in more detail General Fund transactions.
The General Fund generated net income of £29,586, and had a balance at 31 December 2020 of £71,562 (2019: £41,976).
The Restricted Fund Balance at 31 December 2020 was £118,596 (2019: £141,508) of which the major constituents were Human Trafficking and Church and Communities Transformation.
## **Reserves Policy and Going Concern**
At the end of December 2020, the balance on General Fund was £71,562 (2019: £41,976) and the balance on Restricted Reserves was £118,596 (2019: £141,508). The balance of free reserves as at 31 December 2020 were £69,427 (2019: £40,554).
The Trustees are pleased to report a continued net surplus following careful cost control and negotiation with donors to permit restricted grants to contribute towards core costs. The Board is confident that the Anglican Alliance is a going concern in view of these facts.
Core budget costs (including any staff costs which are paid from Restricted Funds) are of the order of £300,000 per year and over 90% of these costs are associated with employment of staff. The Trustees’ policy is to establish unrestricted reserves sufficient to cover three months of operating costs of around £75,000, as it is risky for Trustees and staff to enter into obligations and contracts where the obligations are not currently covered by free reserves.
## **Trustees’ Responsibilities in relation to the Financial Statements**
The law applicable to charities in England and Wales requires the Trustees to prepare the annual report and financial statements for each financial year which give a true and fair view of the charity’s financial activities during the year and of its financial position at the end of the year. In preparing financial statements giving a true and fair view, the Trustees should follow best practice and:
- select suitable accounting policies and then apply them consistently;
- make judgments 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 presume that the charity will continue in operation.
The Trustees are responsible for keeping accounting records which disclose with reasonable accuracy the financial position of the charity and which enable them to ascertain the financial position of the charity and ensure that the financial statements comply with the Companies Act 2006. The Trustees are responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
7
The Trustees are not aware of any relevant audit information that has not been disclosed to the charity’s auditors. The Trustees have taken all the steps that ought to have been taken in order to make themselves aware of any relevant audit information and to establish that the charity’s auditors are aware of that information.
These financial statements have been prepared in accordance with the provisions applicable to companies’ subject to the small companies’ regime.
## **Auditors**
The Auditors, Mazars LLP, have signified their willingness to continue in office.
Approved by the Trustees and signed on their behalf by:
+ Alastair Redfern (Sep 28, 2021 21:41 GMT+1)
The Rt Revd Alastair Redfern _Vice Chair_
Date: 28-Sep-2021
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## **Independent Auditors’ Report to the Members of the Anglican Alliance**
## **Opinion**
We have audited the financial statements of Anglican Alliance (the ‘charity’) for the year ended 31 December 2020 which comprise the Statement of Financial Activities, the Balance Sheet, the Statement of Cash Flows and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (United Kingdom Generally Accepted Accounting Practice).
In our opinion, the financial statements:
- give a true and fair view of the state of the charity’s affairs as at 31 December 2020 and of its income and expenditure for the year then ended;
- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
- have been prepared in accordance with the requirements of the Companies Act 2006.
## **Basis for opinion**
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
## **Conclusions relating to going concern**
In auditing the financial statements, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.
## **Other information**
The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are
9
required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
## **Opinions on other matters prescribed by the Companies Act 2006**
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the Annual Report of the Trustees which includes the Directors’ Report prepared for the purposes of company law, for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Directors’ Report included within the Annual Report of the Trustees has been prepared in accordance with applicable legal requirements.
## **Matters on which we are required to report by exception**
In light of the knowledge and understanding of the charity and its environment obtained in the course of the audit, we have not identified material misstatements in the Directors’ Report included within the Annual Report of the Trustees.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
- adequate and proper accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
- the financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of trustees’ remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit.
- the trustees were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies’ exemption in preparing the Trustees’ Report and from the requirement to prepare a Strategic Report.
## **Responsibilities of Trustees**
As explained more fully in the trustees’ responsibilities statement set out on page 7 and 8, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the trustees are responsible for assessing the charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charity or to cease operations, or have no realistic alternative but to do so.
## **Auditor’s responsibilities for the audit of the financial statements**
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the
10
aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of the financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. Based on our understanding of the charity and its activities, we identified that the principal risks of non-compliance with laws and regulations related to the Charities Act 2011, UK tax legislation, pensions legislation, employment regulation and health and safety regulation, anti-bribery, corruption and fraud, money laundering, non-compliance with implementation of government support schemes relating to COVID-19, and we considered the extent to which noncompliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements, such as the Companies Act 2006 and the Charities Statement of Recommended Practice.
We evaluated the trustees’ and management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls) and determined that the principal risks were related to posting manual journal entries to manipulate financial performance, management bias through judgements and assumptions in significant accounting estimates, in particular in relation to use of restricted funds, and significant one-off or unusual transactions.
Our audit procedures were designed to respond to those identified risks, including non-compliance with laws and regulations (irregularities) and fraud that are material to the financial statements. Our audit procedures included but were not limited to:
- Discussing with the trustees and management their policies and procedures regarding compliance with laws and regulations;
- Communicating identified laws and regulations throughout our engagement team and remaining alert to any indications of non-compliance throughout our audit; and
- Considering the risk of acts by the charity which were contrary to applicable laws and regulations, including fraud.
Our audit procedures in relation to fraud included but were not limited to:
- Making enquiries of the trustees and management on whether they had knowledge of any actual, suspected or alleged fraud;
- Gaining an understanding of the internal controls established to mitigate risks related to fraud;
- Discussing amongst the engagement team the risks of fraud; and
- Addressing the risks of fraud through management override of controls by performing journal entry testing.
There are inherent limitations in the audit procedures described above and the primary responsibility for the prevention and detection of irregularities including fraud rests with management. As with any audit, there remained a risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations or the override of internal controls.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
## **Use of the audit report**
This report is made solely to the charity’s members as a body in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charity’s
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members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity’s members as a body for our audit work, for this report, or for the opinions we have formed.
Signed:
Nicola Wakefield (Sep 29, 2021 21:41 GMT+1)
Name:
Nicola Wakefield (Senior Statutory Auditor)
for and on behalf of Mazars LLP
Chartered Accountants and Statutory Auditor
6 Sutton Plaza, Sutton Court Road, Sutton, Surrey, SM1 4FS Date: 29-Sep-2021
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## **Anglican Alliance**
## **Statement of Financial Activities** for the year ended 31 December 2020
|**_Notes_**
**Income**
_Donations_
Anglican Agencies &
Charities
Anglican Consultative Council
Compass Rose Society*
Donations
**Total Income**
**Expenditure**
_Expenditure on charitable activities_
Development
Relief
Advocacy
Capacity building
Regional meetings
**Total Expenditure**
3
Net Income/(expenditure)
Transfers between funds
Net movement in funds for the
year
10
**Reconciliation of funds**
Total funds brought forward
**Total funds carried forward**|**Unrestricted**
**Restricted**
**Total 2020**
**Unrestricted**
**Restricted**
**Total 2019**
**£**
**£**
**£**
**£**
**£**
**£**
155,356
113,051
**268,407**
165,537
148,228
**313,765**
58,536
-
**58,536**
59,008
-
**59,008**
-
33,284
**33,284**
82
40,000
**40,082**
714
-
**714**
6,108
-
**6,108**|
|---|---|
||214,606
146,335
**360,941**
230,735
188,228
**418,963**|
||54,823
10,918
**65,741**
62,734
61,692
**124,426**
73,101
56,284
**129,385**
10,447
9,000
**19,447**
18,274
46,475
**64,749**
64,247
75,577
**139,824**
36,932
55,570
**92,502**
63,162
50,493
**113,655**
1,890
-
**1,890**
13,907
-
**13,907**|
||185,020
169,247
**354,267**
214,497
196,762
**411,259**|
|||
||29,586
(22,912)
**6,674**
16,238
(8,534)
**7,704**|
||-
-
**-**
(1,363)
1,363
**-**
29,586
(22,912)
**6,674**
14,875
(7,171)
**7,704**
41,976
141,508
**183,484**
27,101
148,679
**175,780**|
||71,562
118,596
**190,158**
41,976
141,508
**183,484**|
The Statement of Financial Activities also complied with the requirements for an income and expenditure account under the Companies Act 2006.
All activities relate to ongoing operations.
The charity has no recognised gains or losses other than the net movement in funds for the year shown above.
* Donations from Compass Rose were granted to the Anglican Consultative Council by the Canadian Compass Rose Society as restricted funds for the benefit of the Anglican Alliance. The amounts were then granted to the Anglican Alliance by the Anglican Consultative Council in accordance with the restriction.
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## **Anglican Alliance**
## **Balance Sheet** as at 31 December 2020
|**_Notes_**
**Fixed Assets**
Office equipment
6
**Current Assets**
Debtors
7
Cash at bank and in hand
**Total Current Assets**
**Current Liabilities**
Creditors amounts falling
due within one year
8
**Net Current Assets**
**Total Assets less Current**
**Liabilities**
**Net Assets**
**Funds of the Charity**
10|**Unrestricted**
**Restricted**
**Total 2020**
**Unrestricted**
**Restricted**
**Total 2019**
**£**
**£**
**£**
**£**
**£**
**£**
2,135
**-**
**2,135**
1,422
**-**
**1,422**
15,800
8,561
**24,361**
16,121
-
**16,121**
83,496
111,484
**194,980**
45,810
141,508
**187,318**|
|---|---|
||99,296
120,045
**219,341**
61,931
141,508
**203,439**|
||29,869
1,449
**31,318**
21,377
-
**21,377**|
||69,427
118,596
**188,023**
40,554
141,508
**182,062**|
|||
||71,562
118,596
**190,158**
41,976
141,508
**183,484**|
||71,562
118,596
**190,158**
41,976
141,508
**183,484**|
||71,562
118,596
**190,158**
41,976
141,508
**183,484**|
These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.
Approved by the Trustees and signed on their behalf by;
+ Alastair Redfern (Sep 28, 2021 21:41 GMT+1)
The Rt Revd Alastair Redfern Vice Chair
Date: 28-Sep-2021
14
## **Anglican Alliance Notes to the Financial Statements for the year 31 December 2020**
## **Note 1 Accounting Policies**
## **Accounting Conventions**
- (a) The financial statements are 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) (effective 1 January 2019) – (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006. The charity is a public benefit entity as defined by FRS 102 (PBE 3.3a)
- (b) The financial statements have been prepared under the historic cost convention.
- (c) **Income** The Anglican Alliance is funded substantially through grants from other Anglican Agencies and Charities and the Anglican Consultative Council. Income is accounted for on a cash received basis except that an accrual is made where certain substantial donations are received after year end but are supporting expenditure for the prior year.
- (d) **Expenditure** All expenditure is accounted for on an accruals basis and has been listed under the headings that aggregate all the costs related to that activity. Where costs cannot be directly attributed, they have been allocated to activities on a basis consistent with the use of the resources.
Direct costs including directly attributable salaries are allocated on an actual basis to the key strategic areas of activity.
Support staff costs are allocated on the basis of time spent.
Governance costs are included in Support costs; they include audit and professional fees and trustees’ expenses in attending meetings.
- (e) **Donations in Kind** Staff costs and offsetting donations in kind income represents staff time donated by employees of the Anglican Consultative Council to the Anglican Alliance. This has been calculated based on the estimated staff time used, and the gross cost of those staff.
- (f) **Restricted funds** are funds subject to specific restrictions imposed by donors or funds provided from external sources for specific projects. The purposes of Restricted Funds are set out in note 10.
- **(g) Fixed Assets** The historic cost convention applies to the treatment of Tangible Fixed Assets. Expenditure above £800 is capitalised. Tangible fixed assets are depreciated on a straight line basis over their estimated useful life. The period used for Information Technology Equipment is 4 years.
- (h) **Going concern** In the trustees’ report there is a review of financial performance and of the charity’s reserves position. At the end of December 2020, the balance on General Fund was £ 71,562 surplus (2019: £41,976 surplus) and the balance on Restricted Reserves was £118,596 (2019: £141,508). Performance against budget during 2020 was satisfactory and income in 2020 has exceeded costs. There was continued increase in surplus in general funds moving towards the target level. The Trustees believe the charity is well placed to manage business risks and it is a reasonable expectation that there are adequate resources to continue in operational existence for the foreseeable future. There are no known material uncertainties that call into doubt the charity’s ability to continue. The accounts have therefore been prepared on the basis that the charity is a going concern.
15
## **Anglican Alliance Notes to the Financial Statements for the year 31 December 2020**
## **Note 2 Constitution**
The Anglican Alliance is established by constitution subscribed to by its members, the Trustees of The Anglican Consultative Council, a charity registered in England and Wales. The Anglican Consultative Council is the parent charity of the Anglican Alliance.
The Anglican Consultative Council is a charity registered in England and Wales, registration number 1137273 and a company limited by guarantee, registration number 7311767. It was established by constitution subscribed to by the member churches of the Anglican Communion on 12 July 2010. Its principal address is St Andrew’s House, 16 Tavistock Crescent, Westbourne Park, London W11 1AP.
## **Note 3 Analysis of Expenditure**
|**Unrestricted Funds (General)**
_Charitable Activities_
Development
Relief
Advocacy
Capacity Building
Regional Meetings
**Total Unrestricted Expenditure**
**Restricted Funds**
_Charitable Activities_
Development
Relief
Advocacy
Capacity Building
Regional Meetings
**Total Restricted Expenditure**
**Total Expenditure**
**Analysis of Support**
**Costs**
**Development**
**Relief**
**£**
**£**
Office Expenses
1,796
2,547
Governance
1,600
2,134
Website
188
317
Publicity
746
751
4,330
5,749|**Unrestricted Funds (General)**
_Charitable Activities_
Development
Relief
Advocacy
Capacity Building
Regional Meetings
**Total Unrestricted Expenditure**
**Restricted Funds**
_Charitable Activities_
Development
Relief
Advocacy
Capacity Building
Regional Meetings
**Total Restricted Expenditure**
**Total Expenditure**
**Analysis of Support**
**Costs**
**Development**
**Relief**
**£**
**£**
Office Expenses
1,796
2,547
Governance
1,600
2,134
Website
188
317
Publicity
746
751
4,330
5,749|**Staff**
**Costs**
**Other**
**Direct**
**Costs**
**Support**
**Costs**
**Total**
**2020**
**Total**
**2019**
**£**
**£**
**£**
**£**
**£**
49,422
1,737
3,664
**54,823**
**62,734**
65,897
2,317
4,887
**73,101**
**10,447**
16,474
579
1,221
**18,274**
**64,247**
32,948
1,540
2,444
**36,932**
**63,162**
-
1,890
**1,890**
**13,907**|
|---|---|---|
|||164,741
8,063
12,216
**185,020**
**214,497**|
|||9,256
996
666
**10,918**
**61,692**
51,627
3,795
862
**56,284**
**9,000**
30,000
15,595
880
**46,475**
**75,577**
51,000
4,006
564
**55,570**
**50,493**
-
-
-
**-**
**-**|
|||141,883
24,392
2,972
**169,247**
**196,762**|
|||306,624
32,455
15,188
**354,267 **
**411,259**|
|||**Advocacy**
**Capacity**
**Building**
**Regional**
**Meetings**
**Total**
**2020**
**Total**
**2019**
**£**
**£**
**£**
**£**
**£**
614
1,558
-
**6,515**
**3,149**
533
1,067
-
**5,334**
**17,359**
63
126
-
**694**
**329**
891
257
-
**2,645**
**2,084**|
||4,330
5,749|2,101
3,008
-
**15,188**
**22,921**|
16
## **Anglican Alliance Notes to the Financial Statements for the year 31 December 2020**
|**Note 4 Net Movement in Funds is after charging:**
Audit Fees
Audit Fees- Previous year
Accountancy & Advisory Fees
**Note 5 Trustees & Employee Information**
Average monthly head count
Average number of full-time equivalent staff(including part-time staff)
Based in London
Based overseas
Total
Salaries
Social Security Costs
Pension Contributions
Donation in Kind staff time received
Other staff costs
Number of employees whose emoluments were in excess of £60,000
Expenses reimbursed to 1 (2019: 6) trustees as meeting expenses:
No remuneration was paid to Trustees during the year (2019: Nil)|**Total**
**Total**
**2020**
**2019**
**£**
**£**
4,560
4,560
102
-
2,031
1,749
**Total**
**Total**
**2020**
**2019**
9
9|
|---|---|
||3
3
3
3|
||6
6|
||**£**
**£**|
||241,067
213,065
13,497
10,419
12,384
12,265
39,676
30,008
-
2,449|
||306,624
268,206|
||Nil
Nil|
||**£**
**£**
598
3,555|
|||
The key management personnel of the Anglican Alliance comprise the trustees and the executive director. The total employee benefits of the key management personnel of the Anglican Alliance were £65,830 (2019: £65,831).
The donation in kind staff time cost represents staff time donated by employees of the Anglican Consultative Council to the Anglican Alliance. The value is recognised as income, and as an offsetting cost. Donated staff time includes support in the areas of accountancy and governance.
17
## **Anglican Alliance Notes to the Financial Statements for the year 31 December 2020**
## **Note 6 Fixed Assets**
|**Fixed Assets**
**Cost**
At 1 Jan 2020
Additions
At 31 December 2020
**Accumulated Depreciation**
At 1 Jan 2020
Charge for period
At 31 December 2020
**Net Book Value**
At 31 December 2020
At 31 December 2019
**Note 7 Debtors**
Anglican Consultative Council (see note 14)
Prepayments
Other Amounts Receivable|**Information**
**Technology**
**Equipment**
**2020**
**£**
**£**
1,750
1,750
1,416
1,416|
|---|---|
||3,166
3,166|
||328
328
703
703|
||1,031
1,031|
||2,135
2,135|
||1,422
1,422|
||**2020**
**2019**
**£**
**£**
800
-
510
180
23,051
15,941|
||24,361
16,121|
Other Amounts Receivable includes an interest free loan of £15,000 to Anglican Development Services Kenya to continue their research programme on youth vulnerability to human trafficking. The loan is expected to be repaid in 2021 when retrospective grant funding is received.
## **Note 8 Creditors amounts falling due within one year**
|Taxation & Social Security
Accrued Expenses
Anglican Consultative Council
Other Creditors
Pension Contributions Payable|**2020**
**2019**
**£**
**£**
3,191
3,329
19,264
10,395
-
1,417
5,933
3,839
2,930
2,397|
|---|---|
||31,318
21,377|
18
**Anglican Alliance Notes to the Financial Statements for the year 31 December 2020**
## **Note 9 Statement of Cash Flows**
|**Reconciliation of net income / (expenditure) to net**
**cash flow from Operating Activities**
**General**
**Restricted**
**Total 2020**
**Total 2019**
**£**
**£**
**£**
**£**
Changes in resources before revaluations and transfers
29,586
(22,912)
**6,674**
**7,704**
Transfers between funds
-
-
**-**
-
Depreciation
703
-
**703**
**328**
Increase in Creditors
8,492
1,449
**9,941**
**1,742**
(Increase) / Decrease in Debtors
321
(8,561)
**(8,240)**
**85,561**
**Net cash provided by Operating Activities**
39,102
(30,024)
**9,078**
**95,335**
Investing Activities
Purchase of Fixed Assets
(1,416)
-
**(1,416)**
(1,750)
**Net outflow from Investing Activities**
(1,416)
-
**(1,416)**
(1,750)
Increase in cash and cash equivalents
37,686
(30,024)
**7,662**
**93,585**
Cash and cash equivalents at 1 January 2020
45,810
141,508
**187,318**
**93,733**
**Total cash and cash equivalents at 31 December**
**2020**
83,496
111,484
**194,980**
**187,318**
**Note 10 Total Funds Movement**
**Opening**
**Balance**
**Income**
**Expenditure**
**Transfers**
**Closing**
**Balances**
**£**
**£**
**£**
**£**
**£**
**Unrestricted Funds – General**
41,976
214,606
185,020
-
**71,562 **
**Restricted Funds**
Covid 19 Response Compass Rose
-
33,284
33,284
-
**-**
Covid 19 Response Comm of St Andrews
-
20,000
20,000
-
**-**
Human Trafficking
112,268
-
46,475
-
**65,793**
Church and Community Transformation
11,641
80,000
50,046
-
**41,595**
Resilience Course
-
8,051
3,196
-
**4,855**
Agents of Change
11,692
-
7,328
-
**4,364**
Health and Community Network
-
5,000
5,000
-
**-**
Other restricted funds
5,907
-
3,918
-
**1,989**
**Total Restricted Funds**
141,508
146,335
169,247
-
**118,596**
**Total Funds**
183,484
360,941
354,267
-
**190,158**|**Reconciliation of net income / (expenditure) to net**
**cash flow from Operating Activities**
**General**
**Restricted**
**Total 2020**
**Total 2019**
**£**
**£**
**£**
**£**
Changes in resources before revaluations and transfers
29,586
(22,912)
**6,674**
**7,704**
Transfers between funds
-
-
**-**
-
Depreciation
703
-
**703**
**328**
Increase in Creditors
8,492
1,449
**9,941**
**1,742**
(Increase) / Decrease in Debtors
321
(8,561)
**(8,240)**
**85,561**
**Net cash provided by Operating Activities**
39,102
(30,024)
**9,078**
**95,335**
Investing Activities
Purchase of Fixed Assets
(1,416)
-
**(1,416)**
(1,750)
**Net outflow from Investing Activities**
(1,416)
-
**(1,416)**
(1,750)
Increase in cash and cash equivalents
37,686
(30,024)
**7,662**
**93,585**
Cash and cash equivalents at 1 January 2020
45,810
141,508
**187,318**
**93,733**
**Total cash and cash equivalents at 31 December**
**2020**
83,496
111,484
**194,980**
**187,318**
**Note 10 Total Funds Movement**
**Opening**
**Balance**
**Income**
**Expenditure**
**Transfers**
**Closing**
**Balances**
**£**
**£**
**£**
**£**
**£**
**Unrestricted Funds – General**
41,976
214,606
185,020
-
**71,562 **
**Restricted Funds**
Covid 19 Response Compass Rose
-
33,284
33,284
-
**-**
Covid 19 Response Comm of St Andrews
-
20,000
20,000
-
**-**
Human Trafficking
112,268
-
46,475
-
**65,793**
Church and Community Transformation
11,641
80,000
50,046
-
**41,595**
Resilience Course
-
8,051
3,196
-
**4,855**
Agents of Change
11,692
-
7,328
-
**4,364**
Health and Community Network
-
5,000
5,000
-
**-**
Other restricted funds
5,907
-
3,918
-
**1,989**
**Total Restricted Funds**
141,508
146,335
169,247
-
**118,596**
**Total Funds**
183,484
360,941
354,267
-
**190,158**|**General**
**Restricted**
**£**
**£**
29,586
(22,912)
-
-
703
-
8,492
1,449
321
(8,561)|**Total 2020**
**Total 2019**
**£**
**£**
**6,674**
**7,704**
**-**
-
**703**
**328**
**9,941**
**1,742**
**(8,240)**
**85,561**|
|---|---|---|---|
|||39,102
(30,024)|**9,078**
**95,335**|
|||(1,416)
-|**(1,416)**
(1,750)|
|||(1,416)
-|**(1,416)**
(1,750)|
|||37,686
(30,024)
45,810
141,508|**7,662**
**93,585**
**187,318**
**93,733**|
|||83,496
111,484|**194,980**
**187,318**|
||-
33,284
33,284
-
**-**
-
20,000
20,000
-
**-**
112,268
-
46,475
-
**65,793**
11,641
80,000
50,046
-
**41,595**
-
8,051
3,196
-
**4,855**
11,692
-
7,328
-
**4,364**
-
5,000
5,000
-
**-**
5,907
-
3,918
-
**1,989**|||
||141,508
146,335
169,247
-
**118,596**|||
||183,484
360,941
354,267
-
**190,158**|||
19
## **Anglican Alliance Notes to the Financial Statements for the year 31 December 2020**
## **Note 10 Total Funds Movement (continued)**
Restricted Funds are described below:
**Human Trafficking** – a project that responds to the issues of modern slavery and human trafficking by bringing together international, interfaith and ecumenical actors to recommend national and international strategies, and provides a platform for initiatives from the local to the global to share experiences and best practices.
**Church and Community Transformation -** A project that addresses the challenges of poverty and inequality in local communities by bringing together practitioners and beginners to provide a platform for sharing experiences, best practices and strategies for effective church and community transformation that is based on the assets (the resources, skills and experiences) already present in the community.
**Agents of Change -** A programme developed by the Anglican Alliance to help Anglicans anywhere in the world tackle poverty and bring about transformation in their local communities, comprising an 8-module course delivered in different ways, including face-to-face delivery - in part or whole - and distance-learning.
**Resilience Course –** An online Resilience Course was launched in collaboration with Episcopal Relief and Development supporting churches to develop capacity in disaster preparedness and resilience.
**Covid-19 Response Funds -** A project to help connect, equip and encourage the Anglican Communion’s churches and agencies in their response to the pandemic including the formation of a global Covid-19 task force and developing an online resource hub.
**Health and Community Network –** The network will provide a coordinated Anglican voice on key health issues and bring together practitioners, church leaders and academics from across the Communion to inform practice and advocacy.
## **Note 11 Taxation**
The Anglican Alliance is a registered charity and is obliged to comply with the HM Revenue & Customs SelfAssessment rules. However, its charitable activities are exempt from United Kingdom direct taxation.
## **Note 12 Capital Commitments**
There were no outstanding capital commitments at the year end.
## **Note 13 Pension Commitments**
The Anglican Alliance participates in the Pension Builder Scheme section of CWPF for lay staff. The Scheme is administered by the Church of England Pensions Board, which holds the assets of the schemes separately from those of the Employer and the other participating employers.
The Church Workers Pension Fund has a section known as the Defined Benefits Scheme, a deferred annuity section known as Pension Builder Classic and a cash balance section known as Pension Builder 2014.
20
## **Anglican Alliance Notes to the Financial Statements for the year 31 December 2020**
## **Pension Builder Scheme**
The Pension Builder Scheme of the Church Workers Pension Fund is made up of two sections, Pension Builder Classic and Pension Builder 2014, both of which are classed as defined benefit schemes.
Pension Builder Classic provides a pension for members for payment from retirement, accumulated from contributions paid and converted into a deferred annuity during employment based on terms set and reviewed by the Church of England Pensions Board from time to time. Bonuses may also be declared, depending upon the investment returns and other factors.
Pension Builder 2014 is a cash balance scheme that provides a lump sum that members use to provide benefits at retirement. Pension contributions are recorded in an account for each member. This account may have bonuses added by the Board before retirement. The bonuses depend on investment experience and other factors. There is no requirement for the Board to grant any bonuses. The account, plus any bonuses declared, is payable from members’ Normal Pension Age.
There is no sub-division of assets between employers in each section of the Pension Builder Scheme.
The scheme is a multi-employer scheme as described in Section 28 of FRS 102 as it is not possible to attribute the Pension Builder Scheme’s assets and liabilities to specific employers. This means that contributions are accounted for as if the Scheme were a defined contribution scheme. The pensions costs charged to the SoFA in the year are the contributions payable of £12,384 (2019: £12,265), of which a total of £2,930 (2019: £2,397) was outstanding at year end.
A valuation of the Pension Builder Scheme is carried out once every three years. The most recent was carried out as at 31 December 2016. A valuation as at 31 December 2019 was under way as at 31 December 2020.
For the Pension Builder Classic section, the valuation revealed a deficit of £14.2m on the ongoing assumptions used. At the most recent annual review, the Board chose not to grant a discretionary bonus, which will have acted to improve the funding position. There is no requirement for deficit payments at the current time.
For the Pension Builder 2014 section, the valuation revealed a surplus of £1.8m on the ongoing assumptions used. There is no requirement for deficit payments at the current time.
The legal structure of the scheme is such that if another employer fails, the Anglican Alliance could become responsible for paying a share of that employer’s pension liabilities.
**Note 14 Summary of transactions between the Anglican Alliance and the Anglican Consultative Council**
|Opening balance – owed (by) ACC
Expenses paid by ACC on behalf of Anglican Alliance
Grant made by ACC to Anglican Alliance
Grants made to Anglican Alliance but paid to ACC
Donation in Kind staff costs included in grant
Grants made to ACC but paid to Anglican Alliance
Cash transfer
Ending balance – owed (by) /to ACC|**2020**
**2019**
**£**
**£**
1,417
(9,471)
23
5,232
(58,536)
(59,008)
(33,284)
(53,832)
31,820
30,008
10,000
-
47,760
88,488|
|---|---|
||**(800)**
**1,417**|
21
Grants made to Anglican Alliance but paid to ACC includes a £33,284 grant from the Canadian Compass Rose Society.
22