Company registration number: 08809420 Charity registration number: 1155762
## **THE SWEDISH CHURCH IN LONDON LIMITED**
**(A COMPANY LIMITED BY GUARANTEE)**
# **ANNUAL REPORT AND CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021**
## **THE SWEDISH CHURCH IN LONDON LIMITED**
## **CONTENTS (CONTINUED)**
|Reference and Administrative Details|1|
|---|---|
|Trustees Report|2 to 8|
|Statement of Trustees' Responsibilities|9|
|Independent Auditors' Report|10 to 13|
|Consolidated Statement of Financial Activities|14 to 15|
|Consolidated Balance Sheet|16|
|Balance Sheet|17|
|Consolidated Statement of Cash Flows|18|
|Notes to the Financial Statements|19 to 37|
## **THE SWEDISH CHURCH IN LONDON LIMITED**
## **REFERENCE AND ADMINISTRATIVE DETAILS**
|**Chair**|Madelaine Roysdotter Mason|
|---|---|
|**Trustees**|Madelaine Roysdotter Mason|
||Katarina Maria Backelin|
||Johan Pehr Eric Auren|
||Per Anders Jonsson|
||Linda Maria Peanberg King|
||Mike Olov Christopherson|
||Christian Lars Bjarnam|
||Per Olof Emanuelsson|
|**Principal Office**|6 Harcourt Street|
||London|
||W1H 4AG|
|**Registered Office**|6 Harcourt Street|
||London|
||W1H 4AG|
|**Company Registration Number**|08809420|
|**Church Registration Number**|1155762|
|**Solicitors**|Bates Wells & Braithwaite|
||2-6 Cannon Street|
||London|
||EC4M 6YH|
|**Bankers**|SEB Bank|
||2 Cannon Street|
||London|
||EC4M 6XX|
|**Auditor**|Harmer Slater Limited|
||Statutory Auditor|
||Salatin House|
||19 Cedar Road|
||Sutton|
||Surrey|
||SM2 5DA|
Page 1
## **THE SWEDISH CHURCH IN LONDON LIMITED**
## **TRUSTEES' REPORT FOR THE YEAR ENDED 31 DECEMBER 2021**
The Trustees, who are directors for the purposes of company law, present the annual report together with the financial statements and auditors' report of the charitable company for the year ended 31 December 2021.
## **Governing documentation and constitution**
Ulrika Eleonora Swedish Parish in London, alos known as The Swedish Church in London Ltd, was established in 1710. The Swedish Seamen’s Church (established in 1899) has been an integral part of the Swedish Church in London since 1994. The property on 120 Lower Road was owned by a separate unregistered charitable trust and sold on 8th April 2015. The unregistered charity has been liquidated.
The Swedish Church in London is registered under the Places of Worship Act 1885: 19984 29/71911. Its address is 6 Harcourt Street, London W1H 4AG. The proprietor of the property at 6-11 Harcourt Street is the Official Custodian for Charities on behalf of The Swedish Church in London.
The present Articles of Association of The Swedish Church in London were adopted on 15th December 2013 and came into force from 1st January 2014 when the company limited by guarantee became operational. The Articles include information on the relationship between The Swedish Church in London and its Bishop (of Visby) as well as the Board for Church of Sweden Abroad (SKUT), an organisation under the General Synod of the Church of Sweden and its offices at Church House, SE7 5170 Uppsala, Sweden.
The Swedish Church in London is acompany limited by guarantee which registered as a charity on 12 February 2014, no.1155762 in England. The charitable objects of the parish are:
- to advance the Christian faith for the benefit of the public in accordance with the doctrine as set down in chapter 1 of the Constitution of The Church of Sweden; and
- to promote general charitable purposes, primarily for the benefit of members of the parish and those closely associated with them and related institutions.
## **Public benefit**
The Trustees confirm that they had due regard to the guidance contained in the Charity Commission’s general guidance on public benefit when reviewing the charity’s aims and objectives and in planning future activities. The Trustees consider that the charity has complied with the duty in section 17 of the Charities Act 2011 to have due regard to public benefit guidance published by the Charity Commission.
## **Trustees**
Madelaine Roysdotter Mason Katarina Maria Backelin
Johan Pehr Eric Auren Per Anders Jonsson Linda Maria Peanberg King Mike Olov Christopherson Christian Lars Bjarnam Per Olof Emanuelsson
Trustees do not receive remuneration or benefits from the charity in relation to their role as Trustees.
Page 2
## **THE SWEDISH CHURCH IN LONDON LIMITED**
## **TRUSTEES' REPORT FOR THE YEAR ENDED 31 DECEMBER 2021 (CONTINUED)**
## **STRUCTURE, GOVERNANCE & MANAGEMENT**
## **Nature of governing document**
A board of Trustees, elected by the Members, govern the Church.
The Trustees meet at least five times a year. Trustees are responsible for financial matters within a budget established by the board in January every year.
The Trustees meet at least five times a year. Trustees are responsible for financial matters within a budget decided upon by the Church Member Meeting.
In May, the Church Member Annual Meeting is held to make decisions on matters such as the level of annual church fees, appointment of auditors and election of Trustees and Nomination Committee. The Church Member Meeting adopts financial statements and annual reports.
Members of The Swedish Church in London congregation are those who have paid a member fee. The Trustees may accept applications for membership from non-Swedish Christians. The electoral roll comprises all members having paid the annual Church subscription or are lifetime members.
## **Staff**
During 2021, there were 12 staff, both full-time and part-time, working in the Swedish Church in London. Three of them are seconded from Sweden and paid for by the Church of Sweden.
## **The COVID Pandemic**
The year continued to be affected by the pandemic. The church reopened from lockdown in March. In December we managed to have a full Christmas market and Lucia celebrations. Services continued to be streamed on-line the whole year. This showed that more parishioners could join the Sunday service, even when the church was open for services. The pandemic interfered with our work, and we learned new ways of reaching out to our parishioners in our congregation. Not only the pandemic, but also the introduced congestion charge on weekends affects the church.
## **Key management personnel**
Rector Katarina Bäckelin went on long term sick leave in May for the rest of the year. She served as Chaplain in our congregation 1997 - 2004 and she is our first female rector since 1710, when the Swedish Church in London was started. The Articles consider the Rector to be the key management personnel of the charity. The Rector is employed by the Swedish Church Abroad (SKUT), and is deployed to the Swedish Church in London for five years.
## **Principal risks and uncertainties**
## **Risk assessment process**
A risk assessment process is in place for all aspects of the organisation. The Trustees have considered the risks faced by the Church and, where appropriate, steps are taken to mitigate against those risks which have been identified.
The major risk that has been identified relates to the uncertainty about the level of funding the Church will receive from Sweden. The Trustees are working to meet the deficit in a responsible and lasting way. The financial well-being of The Swedish Church in London is dependent on fund-raising activities and annual members’ fees.
Other risks involve practical and reputational risks concerning the Church’s activities, buildings and staff as well as donations from the Swedish Benevolent Trust charity. A full inspection of the buildings and technical installations of the Church is carried out every five years.
Page 3
## **THE SWEDISH CHURCH IN LONDON LIMITED**
## **TRUSTEES' REPORT FOR THE YEAR ENDED 31 DECEMBER 2021 (CONTINUED)**
## **Work with children**
The Trustees and the Church Council have introduced schemes to ensure observance of legislation requiring Churches and other bodies to obtain police checks for any new employee or volunteer who may come in contact with children. The Church acts in this respect via the Lutheran Council of Great Britain which provides services as an ecumenical umbrella body coordinating required checks. The Swedish police authorities provide checks on staff employed from Sweden. Also, all Staff and Volunteers are checked with the Disclosure and Barring Service (DBS). The Church also agrees and works under the Diocese of London’s and Diocese of Southwark´s Safeguarding Child and Adult Protection Programme.
## **Relationships with related parties**
## **The Swedish Church Abroad (SKUT)**
The Swedish Church Abroad (SKUT) together with the Bishop of Visby oversees the Swedish Church in London Ltd in religious matters giving instructions to the Rector on matters regarding Evangelical Lutheran Church procedures and related issues. During 2021 three full time members of staff were employed and paid by SKUT.
## The Swedish Benevolent Trust (registered charity no: 263680).
The Swedish Benevolent Trust donates the Church’s social care activities by making grants to the Swedish Church in London. The Swedish Benevolent Trust enables the Church to employ two full time Deacons and to provide a considerable range of social welfare services. The trust also pays for part time administrative services provided by the Church. The total amount received during 2021 was £130,000.
## **OBJECTIVES AND ACTIVITIES**
## **Objects and aims**
Until 2008, The Swedish Church in London, with the Seamen’s Church in London, was responsible for religious, social and cultural work in England south of (and including) Birmingham. The Church took over the responsibility for all of the British Isles from 1 January 2009 and after surveys and testing the Church carries out regular services and meetings for Swedes throughout the British Isles.
The religious, social and cultural work is also directed towards short stay Swedish visitors as well as Swedish tourists.
## **Achievements and performance**
## **Church of Sweden Abroad aims for: "Openness, Faith and Hope" We work to the motto: "A living diaconal Church - an oasis in London"**
Swedish Church in London Ltd, Ulrika Eleonora Parish, is covering the British Isles. One church building Ulrika Eleonora, a freehold property, owned by the local congregation, is in use. The church is open every day of the year, except for Bank holidays and five weeks in July and August when the staff is on leave and during that period only open on Sundays for Sunday service. During the year we did regular networking through social media and travel with lunches, services, coffee etc. around the British Isles; Belfast, Birmingham, Bournemouth, Brighton, Winchester, Cardiff, Devon, Dublin, Edinburgh, Liverpool and Manchester.
Page 4
## **THE SWEDISH CHURCH IN LONDON LIMITED**
## **TRUSTEES' REPORT FOR THE YEAR ENDED 31 DECEMBER 2021 (CONTINUED)**
## **Worship:**
Swedish worship has been celebrated in London since 1673 and in Ulrika Eleonora (UE) congregation every Sunday since 1710. During Covid-19 lock-down periods the services have been online in accordance with relevant regulation.
Goals for the year:
- Celebrate Mass every Sunday, of which a Family mass once a month.
- Invite the congregation to church coffee after the services to create opportunities for people to socialise and speak Swedish.
- To provide a rich music life in services and other gatherings. The church choir sings once per month in services and the children’s choir sings at Family mass.
- Services in English have not taken place during the Covid-19 pandemic but will be reintroduced in the year 2022.
- Celebrate worship at least twice per year at several locations; Winchester, Brighton, Bournemouth, Newcastle, Edinburgh, Birmingham, Bristol and Cardiff. Some of these services have been online during the Covid-19 pandemic.
- Lucia services at Southwark Cathedral, St Paul’s Cathedral and 11 services at UE. In addition, the choir visited Brighton for a Lucia services and the chaplain served at Lucia services in Birmingham and Edinburgh.
- The average attendance at Sunday Mass is at an average 21.
## **Teaching:**
All teaching within sermons at mass are with a view to broaden and deepen the congregation’s knowledge of Christian faith and Christian life. Confirmation class started with 15 young people in December 2021. In addition, two online bible study groups were introduced during the Covid-19 pandemic. The first group centred around the Pearls of Life and the second discussed bible texts.
## **Diaconal work:**
- Regular social meetings for all different age groups, where people can feel a sense of belonging, where they can support each other and where we can identify people who need additional support.
- Availability of counselling/spiritual guidance support.
- Many supporting phone calls to people in isolation during the Covid-19 pandemic.
- Emergency phone in constant use.
- Zoom meetings with café hosts throughout the pandemic.
- Supporting individuals in their contact with social services, courts etc.
- Personal counselling on 1300 occasions. 77 home visits. 11 hospital visits.
## **Mission / Communications:**
The goal for our mission this year was to reach an increasing number of Swedish speaking people with the Christian message and to give a positive view of the Swedish Church in Great Britain and Ireland, so that people will join our community of faith.
As the post of communicator has been vacant during 2021, there have been no church magazines. However, the website, newsletters and social media have continually given updates about church activities and services to the congregation and wider community. Sunday services have been available via streaming each Sunday.
Page 5
## **THE SWEDISH CHURCH IN LONDON LIMITED**
## **TRUSTEES' REPORT FOR THE YEAR ENDED 31 DECEMBER 2021 (CONTINUED)**
## **Ecumenism:**
Goals of ecumenism during the year included to deepen relations with the Church of England, other Lutheran churches, Christian churches and denominations and other religions in London locally. The ongoing ecumenical dialogue reflects the contacts we have and often concern the Porvoo agreement.
- The Swedish Church belongs to the local Deanery within London diocese where our priests and deacons attend deanery meetings and gatherings.
- Lucia services with the choir took place in St Pauls Cathedral, Southward Cathedral and St Bartholomew Church in Brighton. In addition, the chaplain participated in Lucia services in Birmingham and Edinburgh.
- • Swedish Church worship in local churches during visits to other parts of the UK.
- Madelaine Mason, chair of Trustees, has been appointed as member of the Council of Lutheran Churches.
- Latvian Lutheran Church celebrates Sunday Mass at the Swedish Church fortnightly and the Icelandic twice per year.
- Nordic Breakfast with other Nordic churches three times a year.
## **- Other activity special projects / events:**
- Music - during 2021 the Director of Music has been on parental leave 70 % and during this time we have had an interim Director of Music on 80 %. This has meant that we have had an additional capacity within the music department. The church choir, the Lucia choir and the children’s choir have been able to continue to rehearse and thrive due to the creative approach and “can do attitude” of the choir leader.
- Advent and Christmas collections were divided three ways: Swedish church diaconal work/Swedish church international work/local London charity.
- The Christmas Fair gathering approximately 75 volunteers took place both indoors and outdoors.
- Scholarship from Thora Ohlsson Cultural Fund was awarded to young students.
## **Staff, buildings, etc.**
- Swedish Church in London has always been a parish church and is owned by the congregation as almost all the parish churches in Sweden and the UK.
- Very good support from the Church Office has been obtained for purposes such as HR, IT, canon law and archives.
- Swedish Church in London had the following committees during the year: Finance, Real Estate, Christmas Fair, Lucia, Nomination, Personnel and Thora Ohlsson Cultural Fund.
## **Challenges, Visions, Looking to the future:**
- We continue to work with the core values of the Church of Sweden Abroad values: “Openness, Faith, Hope”.
- In the first few months of 2022, we have started to find our way back into a vivid church in Harcourt Street and in the British Isles
## **Financial review**
The result for the year 2021 was a profit of £458,609 (2020: loss of £66,936). The main drivers that contributed overwhelmingly to this were:
1. Much larger Christmas market revenue £83,576 (2020: £33,469) and;
2. Much larger Lucia concerts revenue £106,513 (2020: £20,671) due to end of lock down regulations.
Expenses decreased to £908,706 (2020: £941,053) while operating income increased to £84,093 (2020: loss £180,290). With the renewed focus on membership fees and donations the income increased to £453,530 from previous years £368,144. A big thank you to members and donors for supporting us in a difficult year! A special thank you is due to SKUT in Sweden, which gave us a large COVID donation.
Not included in the donations and gifts line was the donations from our sister charity Swedish Benevolent Trust (SBT), which graciously maintained their support for our outreach activities to £130,000 in 2021 (£130,000 in 2020). A heartfelt thank you for this!
Page 6
## **THE SWEDISH CHURCH IN LONDON LIMITED**
## **TRUSTEES' REPORT FOR THE YEAR ENDED 31 DECEMBER 2021 (CONTINUED)**
## **Reserves**
The current unrestricted reserves consisting of the General fund and Buildings fund amounting to £1,520,306 which represents 19 months of expenditure is in accordance with our reserves policy to retain 12 to 24 months of expenditure.
## **Endowments**
The Swedish Church in London has one endowment, the Thora Ohlsson Cultural Fund. The Fund was created 2 January 1997 with an original grant of £100,000 and therefore celebrated its 30th anniversary in 2017 when the fund reached its highest value ever with £359,814 capital invested. The good capital return we had in 2021, an increase of £40,073 made it possible to give 11 scholarships in 2021 for a total £36,500 (2020: £8,484). The endowment ended the year worth £378,918, a slight increase on 2020 (£375,345) and a new all time high.
## **Investment policy and performance**
The Trustees have engaged Cazenove Capital Management to manage its quoted investments on a discretionary basis. The Trustees elected Cazenove in 2012 after a thorough evaluation of possible managers. We invest our available capital long term into an ethical fund managed by Cazenove. The Swedish Church does not leverage its investments into funds, nor does it seek investment funds which are highly leveraged. No material shareholdings were held by the Church in any one company. The Trustees consider the value of investments to be supported by their underlying assets as appropriate.
In 2017 we started investing directly in Swedish equities to gain dividends in SEK to help pay for our Christmas market purchases in Sweden. Details of the investments are given in note 14 to the accounts. The revaluation gain during the year was £374,516 (2020: £113,354) and the investment income was £91,380 (2020: £102,255).
## _Investment Risk Management_
Our investments are governed by investment and treasury policies that are reviewed by the Trustees on a regular basis. The policies are designed to balance the objective of maximising investment returns against the risk and liquidity of the investments. Detailed risk analysis is given in Note 14 to the financial statements.
The Church manages investment risks by retaining expert advisors and operating an investment policy that provides for a high degree of diversification of holdings within investment asset classes. All investments were made in companies listed on a UK stock exchange or incorporated in the UK and therefore all investments are treated as investment assets in the UK. The Church also has other investments which are unquoted and held at cost in line with its accounting policy. All unquoted investments are reviewed on a quarterly basis and regular communication with the investment managers is maintained to assess and manage any new risk exposure.
## _Responsible investment policy_
The Trustees have an ethical investment policy which precludes material investments in businesses producing or selling arms or weapons, gambling, pornography, tobacco, narcotics or engaged in predatory lending. The Church is committed to investing its funds in a responsible manner and for the investment portfolio to be managed in accordance with the Church’s own charitable mission and values. This means having regard to best practice in Environmental, Social and Governance (ESG) issues. The investment managers are expected to encourage good behaviour in the companies in which they invest and should promote sustainability, good business ethics, good employment practices and the transition to a low carbon economy.
## **Fundraising**
Following the implementation of the Charities (Protection and Social Investment Act 2016), the charitable company has reviewed its fundraising activities and confirms that it complies with the regulation. The charitable company did not make use of any external fundraisers. No complaints were received in respect of its fundraising activities.
Page 7
## **THE SWEDISH CHURCH IN LONDON LIMITED**
## **TRUSTEES' REPORT FOR THE YEAR ENDED 31 DECEMBER 2021 (CONTINUED)**
## **Events after the reporting period**
There have been no significant events between the year end and the date of approval of these financial statements which would require a change to, or disclosure in, the financial statements.
## **Statement of disclosure to the auditors**
So far as the Trustees are aware:
(a) there is no relevant audit information of which the Company’s auditors are unaware, and (b) they have taken all the steps that they ought to have taken as trustees in order to make themselves aware of any relevant audit information and to establish that the Company’s auditors are aware of that information.
## **Reappointment of auditor**
During the period, the Trustees appointed Harmer Slater Limited to act as the company's auditor. Harmer Slater Limited are deemed to be reappointed under section 487(2) of the Companies Act 2006.
Before ending this Trustees report we would like to recognise the extraordinary work and responsibility taken by our Financial Manager Linnéa Källman.
The annual report was approved by the Trustees of the Church on 22 May 2022 and signed on its behalf by:
......................................... Madelaine Roysdotter Mason Chairman and Trustee
Page 8
## **THE SWEDISH CHURCH IN LONDON LIMITED**
## **STATEMENT OF TRUSTEES' RESPONSIBILITIES**
The Trustees (who are also the directors of The Swedish Church in London Limited for the purposes of company law) are responsible for preparing the Trustees' report and the financial statements in accordance with applicable law and regulations.
Company law requires the trustees to prepare financial statements for each financial year. The trustees have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). The financial statements are required by law to give a true and fair view of the state of the affairs of the charitable company and the group and of the surplus or deficit for that period. In preparing these financial statements the trustees are required to:
- select suitable accounting policies and apply them consistently
- observe the methods and principles in the Charities SORP
- 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 charitable company will continue in operation.
The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charitable company's transactions and disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Approved by the Trustees of the Church on 22 May 2022 and signed on its behalf by:
......................................... Madelaine Roysdotter Mason Chairman and Trustee
Page 9
## **THE SWEDISH CHURCH IN LONDON LIMITED**
## **INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THE SWEDISH CHURCH IN LONDON LIMITED**
## **Opinion**
We have audited the financial statements of The Swedish Church in London (‘the charitable company’) for the year ended 31 December 2021 which comprise the Consolidated Statement of Financial Activities, the Consolidated and Company Balance Sheet, the Consolidated Cash Flow Statement and Notes to the Financial Statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
- give a true and fair view of the state of the group's and Church's affairs as at 31 December 2021 and of its incoming resources and application of resources, including 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 responsibilities for the audit of the financial statements section of our report. We are independent of the group 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 charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the Trustees with respect to going concern are described in the relevant sections of this report.
## **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.
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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are 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.
Page 10
## **THE SWEDISH CHURCH IN LONDON LIMITED**
## **INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THE SWEDISH CHURCH IN LONDON LIMITED (CONTINUED)**
## **Opinion on other matters prescribed by the Companies Act 2006**
In In our opinion, based on the work undertaken in the course of the audit:
- the information given in the and Trustees Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Annual Report and Trustees Report have been prepared in accordance with applicable legal requirements.
## **Matters on which we are required to report by exception**
In the light of our knowledge and understanding of the group and the parent charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the and the Trustees Report.
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
- adequate accounting records have not been kept by the parent charitable company, or returns adequate for our audit have not been received from branches not visited by us; or
- the parent charitable company 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.
## **Responsibilities of Trustees**
As explained more fully in the Statement of Trustees' Responsibilities (set out on page 9), the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the trustees are responsible for assessing the charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.
## **Auditor 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 aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
## **Extent to which the audit was considered capable of detecting irregularities, including fraud**
Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:
- the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;
- we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and
- we identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.
Page 11
## **THE SWEDISH CHURCH IN LONDON LIMITED**
## **INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THE SWEDISH CHURCH IN LONDON LIMITED (CONTINUED)**
We considered the nature of the charitable company’s sector and its control environment, and reviewed the charitable company’s documentation of their policies and procedures relating to fraud and compliance with laws and regulations. We also identified the laws and regulations applicable to the charitable company through discussions with the Trustees and other management, and from our cumulative audit, knowledge and experience of the charitable company.
We obtained an understanding of the legal and regulatory framework that the Charitable company operates in, and identified the key laws and regulations that:
- had a direct effect on the determination of material amounts and disclosures in the financial statements. These included the Companies Act 2006, the Charities Act 2011, the Charities SORP, and UK financial reporting standards as issued by the Financial Reporting Council; and
- do not have a direct effect on the financial statements but compliance with which may be fundamental to the Charitable company’s ability to operate or to avoid a material penalty. These included the Charitable company’s regulatory requirements, employment and taxation legislations.
- We assessed the susceptibility of the charitable company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:
- making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and
- considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:
- reviewing financial statement disclosures by testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements;
- performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud;
- enquiring of the Trustee concerning actual and potential litigation and claims, and instances of non-compliance with laws and regulations; and
- reading minutes of Trustee meetings, reviewing internal audit reports and reviewing correspondence with the Charities Commission.
There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the Trustees and other management and the inspection of regulatory and legal correspondence, if any.
Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. In addition, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
Page 12
## **THE SWEDISH CHURCH IN LONDON LIMITED**
## **INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THE SWEDISH CHURCH IN LONDON LIMITED (CONTINUED)**
## **Use of the audit report**
This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006, and to the charitable company’s Trustees, as a body, in accordance with Regulation 10 of the Charities Accounts (Scotland) Regulations 2006. Our audit work has been undertaken so that we might state to the charitable company's members and Trustees those matters we are required to state to them in an auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company, the charitable company's members as a body and the charitable company’s Trustees as a body, for our audit work, for this report, or for the opinions we have formed.
......................................
Harmer Slater Limited, Statutory Auditor
Salatin House 19 Cedar Road Sutton Surrey SM2 5DA
22 May 2022
Page 13
## **THE SWEDISH CHURCH IN LONDON LIMITED**
## **CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2021 (INCLUDING CONSOLIDATED INCOME AND EXPENDITURE ACCOUNT)**
|**Note**
**Income and Endowments from:**
Donations and legacies
**3**
Charitable activities
**4**
Investment income
**5**
Other income
**6**
Total income
**Expenditure on:**
Raising funds
**7**
Charitable activities
**8**
Total expenditure
**Net income/(expenditure)**
**before gains/(losses) on**
**investments**
Gains/losses on investment
assets
**Net income/(expenditure)**
**Reconciliation of funds**
Total funds brought forward
Total funds carried forward
20|**Unrestricted**
**£**
311,781
364,313
91,380
83,576
851,050
(96,320)
(669,506)
(765,826)
85,224
157,297
242,521
1,677,123
1,919,644|**Restricted**
**£**
141,749
-
-
-
141,749
-
(106,380)
(106,380)
35,369
177,146
212,515
2,397,801
2,610,316|**Endowment**
**£**
-
-
-
-
-
-
(36,500)
(36,500)
(36,500)
40,073
3,573
375,345
378,918|**Total**
**2021**
**£**
453,530
364,313
91,380
83,576|
|---|---|---|---|---|
|||||992,799|
|||||(96,320)
(812,386)|
|||||(908,706)|
|||||84,093|
|||||374,516|
|||||458,609
4,450,269|
|||||4,908,878|
Page 14
## **THE SWEDISH CHURCH IN LONDON LIMITED**
## **CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2021 (CONTINUED) (INCLUDING CONSOLIDATED INCOME AND EXPENDITURE ACCOUNT)**
|**Note**
**Income and Endowments from:**
Donations and legacies
**3**
Charitable activities
**4**
Investment income
**5**
Other income
**6**
Total income
**Expenditure on:**
Raising funds
**7**
Charitable activities
**8**
Total expenditure
**Net income/(expenditure)**
**before gains/(losses) on**
**investments**
Gains/losses on investment
assets
**Net income/(expenditure)**
**Net movement in funds**
**Reconciliation of funds**
Total funds brought forward
**Total funds carried forward**
20|**Unrestricted**
**£**
164,999
256,795
102,355
33,469
557,618
(62,572)
(666,852)
(729,424)
(171,806)
48,975
(122,831)
(122,831)
1,799,954
1,677,123|**Restricted**
**£**
203,145
-
-
-
203,145
-
(203,145)
(203,145)
-
62,744
62,744
62,744
2,335,057
2,397,801|**Endowment**
**£**
-
-
-
-
-
-
(8,484)
(8,484)
(8,484)
1,635
(6,849)
(6,849)
382,194
375,345|**Total**
**2020**
**£**
368,144
256,795
102,355
33,469|
|---|---|---|---|---|
|||||760,763|
|||||(62,572)
(878,481)|
|||||(941,053)|
|||||(180,290)|
|||||113,354|
|||||(66,936)|
|||||(66,936)
4,517,205|
|||||4,450,269|
All of the group's activities derive from continuing operations during the above two periods.
The funds breakdown for 2020 is shown in note 20.
Page 15
## **THE SWEDISH CHURCH IN LONDON LIMITED**
## **(REGISTRATION NUMBER: 08809420) CONSOLIDATED BALANCE SHEET AS AT 31 DECEMBER 2021**
|**Note**
**Fixed assets**
Tangible assets
**13**
Investments
**14**
**Current assets**
Stocks
**15**
Receivables
**16**
Cash at bank and in hand
**17**
**Creditors: Amounts falling due within one year**
**18**
**Net current assets/(liabilities)**
**Net assets**
**Funds of the group:**
**Endowment**
**20**
**Restricted income funds**
Restricted
**20**
**Unrestricted income funds**
Unrestricted
**20**
**Total funds**
20|**2021**
**£**
442,782
4,236,917
4,679,699
2,147
51,171
297,755
351,073
(121,894)
229,179
4,908,878
378,918
2,610,316
1,919,644
4,908,878|**2020**
**£**
462,085
3,991,739|
|---|---|---|
|||4,453,824|
|||15,819
23,818
80,406|
|||120,043
(123,598)|
|||(3,555)|
|||4,450,269|
|||375,345
2,397,801
1,677,123|
|||4,450,269|
The Trustees have prepared group accounts in accordance with section 398 of the Companies Act 2006 and section 138 of the Charities Act 2011. These accounts are prepared in accordance with the special provisions of Part 15 of the Companies Act relating to small companies and constitute the annual accounts required by the Companies Act 2006 and are for circulation to members of the company.
The financial statements on pages 14 to 37 were approved by the Trustees, and authorised for issue on 22 May 2022 and signed on their behalf by:
......................................... Madelaine Roysdotter Mason Chairman and Trustee
......................................... Katarina Maria Backelin Trustee
Page 16
## **THE SWEDISH CHURCH IN LONDON LIMITED**
## **(REGISTRATION NUMBER: 08809420) BALANCE SHEET AS AT 31 DECEMBER 2021**
|**Note**
**Fixed assets**
Tangible assets
**13**
Investments
**14**
**Current assets**
Receivables
**16**
Cash at bank and in hand
**17**
**Creditors: Amounts falling due within one year**
**18**
**Net current assets**
**Net assets**
**Funds of the Church:**
**Endowment**
**20**
**Restricted income funds**
Restricted
**20**
**Unrestricted income funds**
Unrestricted
**20**
**Total funds**
20|**2021**
**£**
442,782
4,237,017
4,679,799
89,738
294,738
384,476
(110,923)
273,553
4,953,352
378,918
2,610,316
1,964,118
4,953,352|**2020**
**£**
462,085
3,991,839|
|---|---|---|
|||4,453,924|
|||34,549
80,350|
|||114,899
(78,845)|
|||36,054|
|||4,489,978|
|||375,345
2,397,801
1,716,832|
|||4,489,978|
The financial statements on pages 14 to 37 were approved by the Trustees, and authorised for issue on 22 May 2022 and signed on their behalf by:
......................................... Madelaine Roysdotter Mason Chairman and Trustee
......................................... Katarina Maria Backelin Trustee
Page 17
## **THE SWEDISH CHURCH IN LONDON LIMITED**
## **CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2021**
|**Note**
**Cash flows from operating activities**
Net cash income/(expenditure)
**Cash flows from investing activities**
Interest receivable and similar income
**5**
Purchase of investments
Sale of investments
**Net cash flows from investing activities**
**Adjustments to cash flows from non-cash items**
Depreciation
**7**
Investment income
**5**
Revaluation of investments
**Reconciliation of Net Movement in Funds to Net Cash Flow**
**from Operating Activities**
Decrease/(increase) in stocks
**15**
(Increase)/decrease in debtors
**16**
Decrease in creditors
**18**
**Net cash flows from operating activities**
Net increase/(decrease) in cash and cash equivalents
Cash and cash equivalents at 31 December|**2021**
**£**
458,609
91,380
(2,313,923)
2,443,261
220,718
19,303
(91,380)
(374,516)
12,016
13,672
(27,353)
(1,704)
(3,369)
217,349
297,755|**2020**
**£**
(66,936)|
|---|---|---|
|||102,355
(685,195)
771,798|
|||188,958|
|||52,792
(102,355)
(113,354)|
|||(229,853)
(13,018)
59,838
(34,865)|
|||(217,898)|
|||(28,940)|
|||80,406|
All of the cash flows are derived from continuing operations during the above two periods.
Page 18
## **THE SWEDISH CHURCH IN LONDON LIMITED**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021**
## **1 Legal Status**
The Church is limited by guarantee, incorporated in England, and consequently does not have share capital. Each of the Trustees is liable to contribute an amount not exceeding £1 towards the assets of the Church in the event of liquidation. The address of its registered office and principal place of activity is detailed on page 2.
## **2 Accounting policies**
## **Basis of preparation**
The financial statements have been prepared in accordance with the Charities: Statement of Recommended Practice (applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)) (issued in October 2019) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.
The Swedish Church in London meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy notes.
## **Basis of consolidation**
The financial statements consolidate the results of the charity and its wholly owned subsidiary, Swedish Church Services Limited, on a line-by-line basis, to produce the Group financial statements. The consolidated entity is referred to as ’the Group’. The Charity has taken advantage of the exemption in section 408 of the Companies Act from disclosing its individual statement of financial activities.
## **Going concern**
The charitable company’s level of free reserves available at the year end, were considered adequate resources to continue in operational existence for the foreseeable future. However, the Covid-19 pandemic caused the Trustees to review the positions of the Church and its subsidiary Swedish Church Services Limited. Revised budgets were prepared and adopted and although reduced revenues were expected there were also reductions in costs. The Trustees confirm that there are no material uncertainties about the Group's ability to continue as a going concern. Accordingly, the financial statements have been prepared on a going concern basis.
## **Income**
All income is recognised once the church has entitlement to the income, it is probable that the income will be received and the amount of the income receivable can be measured reliably.
Income, including the contributions from The Church of Sweden via SKUT, is accounted for in the year in which it is receivable. Donations are included when received. Legacies are included when notified and the probate has been granted. Gifts and legacies of assets are initially included at their estimated value.
Special events income was generated by the Christmas fair, and Sankta Lucia carol service. Other income was generated by various parish activities including weddings held at the Swedish Church. These incoming resources are all recognised in the consolidated financial statements on a receivable basis.
Investment income is accounted for on a receivable basis and relates to and relates to dividend income from listed investments and interest in respect of bank deposits.
Revenue grants are accounted for on a receivable basis.
Page 19
## **THE SWEDISH CHURCH IN LONDON LIMITED**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 (CONTINUED)**
## **2 Accounting policies (continued)**
## **Donated services and facilities**
Donated professional services and donated facilities are recognised as income when the charity has control over the item, any conditions associated with the donated item have been met, the receipt of economic benefit from the use by the charity of the item is probable and that economic benefit can be measured reliably. In accordance with the Charities SORP (FRS 102).
On receipt, donated professional services and donated facilities are recognised on the basis of the value of the gift to the charity which is the amount the charity would have been willing to pay to obtain services or facilities of equivalent economic benefit on the open market; a corresponding amount is then recognised in expenditure in the period of receipt.
## **Interest receivables**
Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity; this is normally upon notification of the interest paid or payable by the Bank.
## **Expenditure**
Expenditure is recognised when there is a legal or constructive obligation committing the Group to that expenditure, it is probable that settlement will be required and the amount of the obligation can be measured reliably. Expenditure is classified under the following activity headings:
## Raising Funds
Raising funds comprise of costs incurred in generating donation and legacy income, including fundraising staff costs and fundraising marketing costs.
## Charitable expenditure
Charitable expenditure includes direct costs incurred towards achieving the Church’s charitable objectives.
## Grant expenditure
Grant (SKUT) is recognised in the year of award and when communicated to recipient in line with the SORP. Direct costs, including directly attributable salaries, are allocated on an actual basis to each expenditure heading.
## Governance and Support costs
Governance costs relate to the management of the assets, organisational administration and compliance with constitutional and statutory requirements. Support costs are costs incurred which are not directly attributable to our charitable activities and objects. Governance and support costs have been allocated to expenditure headings on the basis of time spent.
## **Investment management fees**
Raising funds cost comprises fees charged by the investment managers for managing the investment portfolio and bank charges.
## **Charitable activities**
Charitable expenditure represents costs directly incurred for the furtherance of the Church's objects. Costs are allocated on a specific basis, according to function, with the exception of staff and some office overhead costs which are allocated based on activity levels.
## **Other expenditure**
Where costs cannot be directly attributed to categories, they have been allocated between parish activities, special events, support costs and management and administration proportional to staff time spent in each area.
## **Governance costs**
Governance costs comprise costs of running the Church as an organisation and is allocated in line with the support costs.
Page 20
## **THE SWEDISH CHURCH IN LONDON LIMITED**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 (CONTINUED)**
## **2 Accounting policies (continued)**
## **Tangible fixed assets**
Individual fixed assets costing £1,000 or more are capitalised at cost.
## **Depreciation and amortisation**
The freehold Church building has been written down to a nominal value.
The other tangible fixed assets are written off over their estimated useful economic lives on a straight line basis at the following rates:
**Asset class Depreciation method and rate** Freehold buildings 2% Fittings, furniture and organ 25% Computers 33.3% Computer licenses 10% Motor vehicles 25% Boiler equipment 10% Kitchen equipment 10%
## **Receivables**
Trade and other receivables are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.
## **Cash and cash equivalents**
Cash and cash equivalents comprise cash on hand and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.
## **Payables**
Payables and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Payables and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.
## **Foreign exchange**
Income and expenditure is translated at the rate ruling on the date of the transaction concerned. Assets and liabilities at the year end are translated at the rate ruling at the balance sheet date.
## **Fund structure**
Unrestricted income funds are general funds that are available for use at the Trustees's discretion in furtherance of the objectives of the group.
Designated funds comprise funds that have been set aside at the discretion of the trustees for specific purposes. The purpose and use of the designated unrestricted funds are set out in the notes to the financial statements.
Restricted funds represent income given for particular purposes within the objects of the charity. These may be income funds that are expendable at the discretion of the trustees in furtherance of a particular aspect of the objects of the charity, or they may be capital funds where the assets are required to be invested or retained for actual use rather than expended.
Page 21
## **THE SWEDISH CHURCH IN LONDON LIMITED**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 (CONTINUED)**
## **2 Accounting policies (continued)**
Endowment funds represent capital assets required to be held on a long term basis for specific charitable purposes within the objects of the charity. Income generated from the assets can be expended in accordance with the donors' wishes.
Transfers between funds in the Statement of Financial Activities are required where Restricted Funds have been expended or have, for other specific reasons, ceased to be restricted.
## **Pensions**
The Church operates a defined contribution pensions scheme providing benefits for employees additional to those from the state. The pension cost charge represents contributions payable by the Church to the fund in respect of the year.
## **Financial instruments**
## **Fixed Asset Investments**
Quoted investments are a form of basic financial instrument and are initially recognised at transaction value and subsequently measured at fair value as at the balance sheet date using the closing market bid price.
The statement of financial activities includes the net unrealised gains and losses arising on revaluation and realised gains and losses arising from disposals throughout the year. Realised gains and losses are calculated as the difference between sale proceeds and the opening carrying value or the purchase value if acquired in the financial year. Unrealised gains and losses are calculated as the difference between the fair value at the year end and the opening carrying value or purchase value if acquired in the financial year.
Unquoted investments are a form basic financial instrument and are measured cost less impairment, the impairment loss is measured as the difference between an asset’s carrying amount and best estimate, which is an approximation of the amount that the Group would receive for the asset if it were to be sold at the Balance sheet date.
Investments in subsidiaries are stated at cost, less provision for impairment within the Church's financial statements.
## **3 Income from donations and legacies**
|Donations and legacies;
Donations from individuals|**Unrestricted**
**funds**
**General**
**£**
311,781
311,781|**Restricted**
**£**
141,749
141,749|**Total**
**2021**
**£**
453,530
453,530|**Total**
**2020**
**£**
368,144|
|---|---|---|---|---|
|||||368,144|
Donations amounting to £141,749 (2020: £203,145) received from Church of Sweden Abroad (SKUT) was restricted.
Page 22
## **THE SWEDISH CHURCH IN LONDON LIMITED**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 (CONTINUED)**
## **4 Income from charitable activities**
|**4 Income from charitable activities**||||
|---|---|---|---|
|Special events
Grants
Other income
**5 Investment income**
Unlisted investments interest
Listed investment dividends|**Unrestricted**
**funds**
**General**
**£**
172,613
130,000
61,700
364,313
**Unrestricted**
**funds**
**General**
**£**
30,623
60,757
91,380|**Total**
**2021**
**£**
172,613
130,000
61,700
364,313
**Total**
**2021**
**£**
30,623
60,757
91,380|**Total**
**2020**
**£**
52,295
130,000
74,500|
||||256,795|
||||**Total**
**2020**
**£**
25,100
77,255|
||||102,355|
Income from listed investments amounting to £nil (2020: £nil) were restricted.
## **6 Other income**
|**6 Other income**||||
|---|---|---|---|
||**Unrestricted**|||
||**funds**|||
|||**Total**|**Total**|
||**General**|**2021**|**2020**|
||**£**|**£**|**£**|
|Swedish Church Services Limited|83,576|83,576|33,469|
Page 23
## **THE SWEDISH CHURCH IN LONDON LIMITED**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 (CONTINUED)**
## **7 Expenditure on raising funds**
## **a) Costs of trading activities:**
|Trading subsidiary costs
**b) Investment management costs:**
Investment management charges
**8 Expenditure on charitable activities**
**Activity**
**undertaken**
**directly**
**£**
Parish activities
615,798
Special events
37,694
Grant
-
653,492|**Unrestricted**
**funds**
**General**
**£**
88,510
88,510
**Unrestricted**
**funds**
**General**
**£**
10,378
10,378
**Grant**
**funding of**
**activity**
**£**
-
-
36,500
36,500|**Total**
**2021**
**£**
88,510
88,510
**Total**
**2021**
**£**
10,378
10,378
**2021**
**£**
615,798
37,694
36,500
689,992|**Total**
**2020**
**£**
44,296|
|---|---|---|---|
||||44,296|
||||**Total**
**2020**
**£**
12,057|
||||12,057|
||||**2020**
**£**
640,933
25,919
8,484|
||||675,336|
£653,492 (2020 - £666,852) of the above expenditure was attributable to unrestricted funds and £36,500 (2020 - £8,484) to restricted funds.
Included in the expenditure analysed above are governance costs of (2020 - ) which relate directly to charitable activities.
Page 24
## **THE SWEDISH CHURCH IN LONDON LIMITED**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 (CONTINUED)**
## **9 Analysis of governance and support costs**
## **Governance costs**
|Audit fees
Audit of the financial statements
**10 Auditors' remuneration**
Audit of the financial statements
**Other fees to auditors**
The auditing of accounts of any associate of the charity|**Unrestricted**
**funds**
**General**
**£**
6,000
6,000|**Total**
**2021**
**£**
6,000
6,000
**2021**
**£**
6,000
(550)|**Total**
**2020**
**£**
5,000|
|---|---|---|---|
||||5,000|
||||**2020**
**£**
5,000|
||||2,400|
## **11 Trustees remuneration and expenses**
No Trustee, nor any persons connected with them, have received any remuneration from the group during the year.
## **12 Staff costs**
The aggregate payroll costs were as follows:
|**Staff costs during the year were:**
Wages and salaries
Social security costs
Pension costs
Staff costs paid by SKUT|**2021**
**£**
301,865
33,244
12,701
106,380
454,190|**2020**
**£**
276,210
24,728
17,450
203,145|
|---|---|---|
|||521,533|
Page 25
## **THE SWEDISH CHURCH IN LONDON LIMITED**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 (CONTINUED)**
## **12 Staff costs (continued)**
The average number of volunteers and employees during the year was:
|Volunteers
Staff - support for charitable activities
Staff - support for charitable activities, paid by SKUT|**2021**
**No**
2
8
1
11|**2020**
**No**
2
7
3|
|---|---|---|
|||12|
The key management personnel of the charitable company is the Rector, who is an employee of Swedish Church Abroad (SKUT). The total remuneration of the Rector amounted to £nil (2020: £nil). No employee received emoluments of more than £60,000 during the year. The Rector was reimbursed £nil (2020: £266) of expenses incurred for the Church. No other Trustee was reimbursed of expenses during the year (2020: £nil).
## **13 Tangible fixed assets**
## **Group and church**
|**Cost**
At 1 January 2021
At 31 December 2021
**Depreciation**
At 1 January 2021
Charge for the year
At 31 December 2021
**Net book value**
At 31 December 2021
At 31 December 2020|**Freehold**
**land and**
**buildings**
**£**
747,649
747,649
308,499
10,277
318,776
428,873
439,150|**Fixture &**
**Fittings**
**£**
638,806
638,806
618,180
8,737
626,917
11,889
20,626|**Motor**
**vehicles**
**£**
16,927
16,927
16,927
-
16,927
-
-|**Computers**
**and licenses**
**£**
41,962
41,962
39,653
289
39,942
2,020
2,309|**Total**
**£**
1,445,344
1,445,344
983,259
19,303
1,002,562
442,782
462,085|
|---|---|---|---|---|---|
## **Freehold property**
The property at 6 Harcourt Street, London, WIH 4AG was acquired by the predecessor charity, Ulrika Eleonora Swedish Parish in London, at an amount immaterial to the charity and as such the original cost is estimated to be nil. Subsequent capital additions have been included at cost and as at the year end have a net book value of £428,874 (2020: £439,150). The insurance value of the property at the year end was £12,636,338 (2020: £12,636,338).
Page 26
## **THE SWEDISH CHURCH IN LONDON LIMITED**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 (CONTINUED)**
## **14 Fixed asset investments**
|**Group**
Quoted investments at market value
Unquoted investments at market value
**Church**
Shares in group undertakings and participating interests
Quoted investments at market value
Unquoted investments at market value|**2021**
**£**
3,481,765
755,152
4,236,917
**2021**
**£**
100
3,481,765
755,152
4,237,017|**2020**
**£**
3,391,847
599,892|
|---|---|---|
|||3,991,739|
|||**2020**
**£**
100
3,391,847
599,892|
|||3,991,839|
All quoted investments are carried at their fair value equivalent to the market value, using the bid price. Unquoted investments are held at historical cost less any impairment as reviewed and decided by the Trustees.
|**Fixed asset investments are represented by:**
Quoted Pooled Investment Vehicles
Unquoted private equity investments
Cash held for quoted investment purposes
Insurance policies held under quoted investments
**The fair value of each class of quoted investments comprise of:**
Equity funds
Bonds
Alternative funds
Multi-Asset funds
Cash
Insurance|**2021**
**£**
2,171,254
755,152
829,099
481,412
4,236,917
**2021**
**£**
-
-
345,904
1,825,350
829,099
481,412
3,481,765|**2020**
**£**
2,013,541
599,892
1,096,894
281,412|
|---|---|---|
|||3,991,739|
|||**2020**
**£**
1,368,165
164,157
481,219
-
1,096,894
281,412|
|||3,391,847|
The Church has no material investment holdings of any of the unlisted company investments.
Page 27
## **THE SWEDISH CHURCH IN LONDON LIMITED**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 (CONTINUED)**
## **14 Fixed asset investments (continued)**
## **Quoted & Unquoted investments**
|**Valuation**
At 1 January 2021
Additions
Disposals
Net investment gains
At 31 December 2021
**Net book value**
At 31 December 2021
At 31 December 2020|**Quoted**
**investments**
**£**
3,391,847
2,158,663
(2,443,261)
374,516
3,481,765
3,481,765
3,391,847|**Unquoted**
**investments**
**£**
599,892
155,260
-
-
755,152
755,152
599,892|**Total**
**£**
3,991,739
2,313,923
(2,443,261)
374,516
4,236,917
4,236,917
3,991,739|
|---|---|---|---|
The historical cost of the quoted investments at 31 December 2021 was £3,453,519 (2020 - £3,453,519). Unquoted investment at historical cost at the current and previous year end comprises the following: Private equity investments amounting to £255,152 (2020: £199,892) and other investments (Loan notes) amounting to £500,000 (2020: £400,000).
## **Investment Management & Risks**
## Quoted investments
Quoted invesments are mainly made up of investment in equities and fixed interest securities which are all traded in quoted public markets, primarily the London Stock Exchange. These investments are generally held under pooled investment vehicles including common investment funds, unit trusts and well established open-ended investment companies. Asset sales and purchases are recognised at the date of trade at cost (that is their transaction value). The significance of financial instruments to the ongoing financial sustainability of the Church is considered in the financial review and investment policy and performance sections of the Trustees’ Annual Report. The main risk to the Church from financial instruments lies in the combination of uncertain investment markets and volatility in yield.
The default rate on fixed interest securities due to corporate failures is expected to improve. The high current demand for high quality corporate bond and government stock continues to depress the yield.
Liquidity risk is anticipated to be low as all assets are traded and the commitment to intervention by central banks and market regulators has continued to provide for orderly trading in the markets and so their ability to buy and sell quoted equities and stock is anticipated to continue. The Church‘s investments are mainly traded in markets with good liquidity and high trading volumes. The Church has no material investment holdings in markets subject to exchange controls or trading restrictions.
Page 28
## **THE SWEDISH CHURCH IN LONDON LIMITED**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 (CONTINUED)**
## **14 Fixed asset investments (continued)**
## Unquoted investments
Unquoted investments comprise of investments in UK registered companies.The main risk the Church is exposed to with unquoted investments is credit risk. Credit risk is managed in line with the Church’s investment policies as well an active Trustee who is heavily engaged in managing and monitoring the investment activities for the Church. Credit risk is managed through regular communication with the representatives of these unlisted companies. These representatives or investment managers are very active with strong financial expertise and commercial background.
## **Investment in subsidiary company**
|**Cost**
At 1 January 2021
At 31 December 2021
**Net book value**
At 31 December 2021
At 31 December 2020|**Subsidiary**
**company**
**£**
100|
|---|---|
||100|
||100|
||100|
## **Subsidiary undertaking**
The Swedish Church in London has a wholly-owned trading subsidiary company, Swedish Church Services Limited. The subsidiary undertaking has a share capital of £100. The registered office of the company is 6 Harcourt Street, London W1H 4AG.
The loss for the financial period of Swedish Church Services Limited was £4,766 (2020 - £17,046) and the aggregate amount of capital and reserves at the end of the period was £(44,474) (2020 - £39,708).
## **Details of undertaking**
Details of the investments in which the Church holds 20% or more of the nominal value of any class of share capital are as follows:
|capital are as follows:||||
|---|---|---|---|
||**Country of**||**Proportion of voting**|
|**Undertaking**|**incorporation**|**Holding**|**rights and shares held**|
||||**2021**
**2020**|
|Swedish Church Services
Limited|England & Wales|Ordinary
Shares|100%
100%|
Page 29
## **THE SWEDISH CHURCH IN LONDON LIMITED**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 (CONTINUED)**
## **15 Stock**
|**15 Stock**|||||
|---|---|---|---|---|
|**Group**
**2021**
**£**
**2020**
**£**
Goods for resale
2,147
15,819
**16 Receivables**
**Group**
**2021**
**£**
**2020**
**£**
Other receivables
8,927
15,339
Amount due from subsidiary company
-
-
Prepayments
42,244
8,479
51,171
23,818
**17 Cash and cash equivalents**
**Group**
**2021**
**£**
**2020**
**£**
Cash at bank
297,755
80,406
**18 Payables: amounts falling due within one year**
**Group**
**2021**
**£**
**2020**
**£**
Trade payables
44,184
48,137
Other taxation and social security
28,015
25,236
Other payables
9,265
6,145
Accruals
40,430
44,080
121,894
123,598||**2021**
**£**
-
**2021**
**£**
8,927
38,567
42,244
89,738
**2021**
**£**
294,738
**2021**
**£**
42,531
21,097
9,265
38,030
110,923||**Church**
**2020**
**£**
-|
|||||**Church**
**2020**
**£**
15,339
10,731
8,479|
|||||34,549|
|||||**Charity**
**2020**
**£**
80,350|
|||||**Church**
**2020**
**£**
33,970
-
6,145
38,730|
|||||78,845|
## **19 Pension and other schemes**
## **Defined contribution pension scheme**
The group operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the group to the scheme and amounted to £12,701 (2020 - £17,450). Contributions totalling £9,255 (2020: £6,145) were payable to the scheme at the end of the year and are included in payables.
Page 30
## **THE SWEDISH CHURCH IN LONDON LIMITED**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021**
## **20 Analysis by Funds**
|**Group**
**Unrestricted**
**_General_**
General fund
**_Designated_**
Tangible fixed assets
Building fund
**_Other_**
Trading funds held by subsidiary
**Total unrestricted**
**Restricted**
Swedish Church in Sweden (SKUT)
Agnes and Axel Welin Memorial Fund
**Total restricted**
**Endowment funds**
Thora Ohlsson's Cultural Fund
**Total funds**|**Balance at 1**
**Jan 21**
**£**
36,150
462,085
1,218,595
(39,707)
1,677,123
-
2,397,801
2,397,801
375,345
4,450,269|**Incoming**
**resources**
**£**
767,474
-
-
83,576
851,050
141,749
-
141,749
-
992,799|**Resources**
**expended**
**£**
(677,484)
-
-
(88,342)
(765,826)
(106,380)
-
(106,380)
(36,500)
(908,706)|**Transfers**
**£**
(8,755)
(19,303)
28,058
-
-
-
-
-
-
-|**Other**
**recognised**
**gains/(losses)**
**£**
157,297
-
-
-
157,297
-
177,146
177,146
40,073
374,516|**Balance at 31**
**Dec 21**
**£**
274,682
442,782
1,246,653
(44,473)|
|---|---|---|---|---|---|---|
|||||||1,919,644|
|||||||35,369
2,574,947|
|||||||2,610,316
378,918|
|||||||4,908,878|
Page 31
## **THE SWEDISH CHURCH IN LONDON LIMITED**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 (CONTINUED)**
|**Group (Prior year)**
**Unrestricted**
**_General_**
General fund
**_Designated_**
Tangible fixed assets
Building fund
**_Other_**
Trading funds held by subsidiary
**Total unrestricted**
**Restricted**
Swedish Church in Sweden (SKUT)
Agnes and Axel Welin Memorial Fund
**Total restricted**
**Endowment**
Thora Ohlsson's Cultural Fund
**Total funds**|**Balance at 1**
**Jan 20**
**£**
60,001
514,877
1,247,737
(22,661)
1,799,954
-
2,335,057
2,335,057
382,194
4,517,205|**Incoming**
**resources**
**£**
524,149
-
-
33,469
557,618
203,145
-
203,145
-
760,763|**Resources**
**expended**
**£**
(678,909)
-
-
(50,515)
(729,424)
(203,145)
-
(203,145)
(8,484)
(941,053)|**Transfers**
**£**
81,934
(52,792)
(29,142)
-
-
-
-
-
-
-|**Other**
**recognised**
**gains/(losses)**
**£**
48,975
-
-
-
48,975
-
62,744
62,744
1,635
113,354|**Balance at 31**
**Dec 20**
**£**
36,150
462,085
1,218,595
(39,707)|
|---|---|---|---|---|---|---|
|||||||1,677,123|
|||||||-
2,397,801|
|||||||2,397,801
375,345|
|||||||4,450,269|
Page 32
# **THE SWEDISH CHURCH IN LONDON LIMITED**
# **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 (CONTINUED)**
## **Unrestricted Funds**
The designated tangible fixed assets represents the net book value of fixed assets held for the Church's use.
The designated Building Fund (previously known as the Capital Fund) represents funds which the trustees intend to hold as investments in order to generate income for the maintenance of the Church building. A large proportion represents receipts from legacies left to the Church by Mr Bremberg and Mrs Wernly. The fund also includes contributions from surpluses.
The General Fund represents the free reserves of the Church.
## **Endowment Funds**
Thora Ohlsson's Cultural Fund - A maximum 80% of income generated can be used for making grants to students and arranging cultural activities with the Swedish congregation in London and at least 20% of income generated is added to capital.
## **Agnes and Axel Welin Memorial Fund**
This fund originates from the 2015 sale of Seaman Church property in London. The Trustees have reviewed the trust documentation and ascertained this to be restricted income, which is to be used towards promoting the Gospel among said people (Swedes in the British Isles) called Lutherans or for the purpose of procuring a larger or more conveniently located piece of ground, reading room, chapel or place of worship. A transfer to reflect the correct accounting treatment was made in 2016.
Page 33
## **THE SWEDISH CHURCH IN LONDON LIMITED**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 (CONTINUED)**
## **Charity**
|**Unrestricted**
**_General_**
General fund
**_Designated_**
Tangible fixed assets
Building fund
**Total Unrestricted**
**Restricted**
Swedish Church in Sweden (SKUT)
Agnes and Axel Welin Memorial Fund
**Total restricted**
**Endowment**
Thora Ohlsson's Cultural Fund
**Total funds**|**Balance at 1**
**Jan 21**
**£**
36,152
462,085
1,218,595
1,716,832
-
2,397,801
2,397,801
375,345
4,489,978|**Incoming**
**resources**
**£**
767,473
-
-
767,473
141,749
-
141,749
-
909,222|**Resources**
**expended**
**£**
(677,484)
-
-
(677,484)
(106,380)
-
(106,380)
(36,500)
(820,364)|**Transfers**
**£**
(8,755)
(19,303)
28,058
-
-
-
-
-
-|**Other**
**recognised**
**gains/(losses)**
**£**
157,297
-
-
157,297
-
177,146
177,146
40,073
374,516|**Balance at 31**
**Dec 21**
**£**
274,683
442,782
1,246,653|
|---|---|---|---|---|---|---|
|||||||1,964,118|
|||||||35,369
2,574,947|
|||||||2,610,316
378,918|
|||||||4,953,352|
Page 34
## **THE SWEDISH CHURCH IN LONDON LIMITED**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 (CONTINUED)**
|**Church (Prior year)**
**Unrestricted**
**_General_**
General fund
**_Designated_**
Tangible fixed assets
Building fund
**Total unrestricted**
**Restricted**
Swedish Church in Sweden (SKUT)
Agnes and Axel Welin Memorial Fund
**Total restricted**
**Endowment**
Thora Ohlsson's Cultural Fund
**Total funds**|**Balance at 1**
**Jan 20**
**£**
60,003
514,877
1,247,737
1,822,617
-
2,335,057
2,335,057
382,194
382,194
4,539,868|**Incoming**
**resources**
**£**
524,149
-
-
524,149
203,135
-
203,135
-
-
727,284|**Resources**
**expended**
**£**
(678,909)
-
-
(678,909)
(203,135)
-
(203,135)
(8,484)
(8,484)
(890,528)|**Transfers**
**£**
81,934
(52,792)
(29,142)
-
-
-
-
-
-
-|**Other**
**recognised**
**gains/(losses)**
**£**
48,975
-
-
48,975
-
62,744
62,744
1,635
1,635
113,354|**Balance at 31**
**Dec 20**
**£**
36,152
462,085
1,218,595|
|---|---|---|---|---|---|---|
|||||||1,716,832|
|||||||-
2,397,801|
|||||||2,397,801|
|||||||375,345|
|||||||375,345|
|||||||4,489,978|
Page 35
## **THE SWEDISH CHURCH IN LONDON LIMITED**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 (CONTINUED)**
## **21 Analysis of net assets between funds**
|**Group**
Tangible fixed assets
Fixed asset investments
Current assets
Current liabilities
Total net assets
Tangible fixed assets
Fixed asset investments
Current assets
Current liabilities
Total net assets|**Unrestricted**
**funds**
**General**
**£**
442,782
1,246,653
351,073
(121,894)
1,918,614
**Unrestricted**
**funds**
**General**
**£**
462,085
1,218,593
120,045
(123,600)
1,677,123|**Restricted**
**funds**
**Restricted**
**£**
-
2,651,419
-
-
2,651,419
**Restricted**
**funds**
**Restricted**
**£**
-
2,397,801
-
-
2,397,801|**Endowment**
**funds**
**Endowment**
**£**
-
338,845
-
-
338,845
**Endowment**
**funds**
**Endowment**
**£**
-
375,345
-
-
375,345|**Total**
**funds**
**2021**
**£**
442,782
4,236,917
351,073
(121,894)|
|---|---|---|---|---|
|||||4,908,878|
|||||**Total**
**funds**
**2020**
**£**
462,085
3,991,739
120,045
(123,600)|
|||||4,450,269|
## **22 Related party transactions**
## **Group**
Details of income from related parties are disclosed in the Trustees' Report
The Swedish Church Abroad (SKUT) is the governing body of the Swedish Church in London. SKUT gives instruction to the Rector on matters regarding Evangelical Lutheran Church procedures and related issues. During the year, 3 (2020: 3) full time members of staff were employed and were paid £106k (2020: £203k ). Also, grants of £nil (2020: £nil) was paid by SKUT during the year.
There were no other related party transactions in the year.
## **23 Donations in kind**
Donated Services Facility has been included in the accounts to a value of £106,380 (2020: £203,145) relating to staff costs paid by SKUT.
Page 36
## **THE SWEDISH CHURCH IN LONDON LIMITED**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 (CONTINUED)**
## **24 Charitable Status**
The entity is a registered charity (no. 1155762) and accordingly, no liability to taxation arises on the year to the extent that income and gains are applied to the charitable company's charitable objects.
## **25 Events after the reporting period**
There have been no significant events between the year end and the date of approval of these financial statements which would require a change to, or disclosure in, the financial statements.
Page 37