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2020-12-31-accounts

CHARITY REGISTRATION NUMBER: 1163285

Empart (UK) Unaudited Financial Statements 31 December 2020

Empart (UK)

Financial Statements

Year ended 31 December 2020

Page
Trustees' annual report 1-3
Independent examiner's report to the trustees 4
Statement of financial activities 5
Statement of financial position 6
Notes to the financial statements 7
The following pages do not form part of the financial statements
Detailed statement of financial activities 17
Notes to the detailed statement of financial activities 19

Empart (UK)

Trustees' Annual Report

Year ended 31 December 2020

The trustees present their report and the unaudited financial statements of the charity for the year ended 31 December 2020.

Reference and administrative details

Registered charity name Empart (UK) Charity registration number 1163285 Principal office 24 Dacre Street Morpeth Northumberland NE61 1HW The trustees P C Van Haaster I J Bott W Turner Independent examiner Michael W Reed Russell House Greenwell Road Alnwick Northumberland NE66 1HB

Structure, governance and management

Our structure

Empart is a non-profit organisation that is committed to maintaining a high level of accountability and transparency. As such, Empart does not issue any shares or pay dividends to any person or organisation that supports it. Empart is registered separately in each country it operates according to existing regulations. Each entity is then managed by its own independent board which is overseen informally by a global executive team. It is the responsibility of each country's individual boards to ensure agreed standards are met.

The charity was founded in the UK in July 2015, after first being established in 1998 in Australia and since then gradually expanded into several other countries.

1

Trustees' Annual Report (continued)

Empart (UK)

Year ended 31 December 2020

Objectives and activities

Our stated objectives

(a) The prevention or relief of poverty by providing funds, items and services to our bona fide indigenous partner charities/organisations in Asia;

(b) The advancement of religion to enable community transformation in Asia and the United Kingdom for the benefit of society, by celebrating both cultures and providing training and services.

(c) To advance education for the public benefit, in particular by the provision of schools and skills training centres in Asia;

(d) The relief of financial need and suffering among victims of natural or other kinds of disaster in the form of money (or other means deemed suitable) for persons, our bona fide indigenous partner charities/organisations and/or affected countries in Asia.

Achievements and performance

Our achievements and objectives 2020

Empart UK currently has a board consisting of 3 trustees, 2 non-trustee members (2019-1) and an advisor from the European Hub (based in Switzerland).

One of Empart UK's trustees is employed by the European Hub (Empart Suisse) with part of their responsibility being committed to the UK. During the year we appointed a new UK Country Leader. The team comprises 1 part-time employee (0.4FTE), 7 part-time volunteers (2019-4) and several other volunteers who support events.

Empart operates throughout the UK with the registered office in Morpeth, Northumberland and a significant partner base in Southern England with the Country leader and part of the team based in London.

The main activity is to fundraise throughout the UK to carry out the stated objectives in Asia. Fundraising activities are undertaken mostly through personal contact and communications to existing donors. Empart UK seeks new donors through targeted events as well as through personal contact.

Specifically:

2

Empart (UK) Trustees. Annual Report (coftfjnwd) Year end8d 31 December 2020 Financial review Charftabl• a¢tlvhlts,Income and expendlture The results fcK the year are r￿)￿￿ in the Statement of Financial ActNibes. Total donalions re￿￿d £81,898 12019'.£52.304). The w?s a surplus of ineLYne during the year Df £5,309 {2019=£4.011). Total expended on charitable actiwtses wa5 £63,9￿ (2019."£39,660). During the year grants totslling £37,470 (2019".£29,5331 were made directty Icwards projects in SoLrth Asia, primarily to support the trainir4J of men arKI w¢men towards discrjles and transfomation of 100,000 communities. More detail of indmdual 8c1N[t￿ supported is gin in the notes ofthe ¥¢ounts. Further expenses were covered by the European Hub in Swrtzerland. In addf(ion to the Country Leader, they provided graphits arKI marketing resources which vrds valued at cost. A breakd(yMI of donated gcJds and servKes is promded in the notes to the accounts. The Board prepare and ￿nUal budget ￿lch rs rr￿it0red at their quarterly meetings. This year, tsking into account day to day runnirrfJ ec6ts and future fiJnding requirements, rt was decided that £3,000 was a reasonable figure to hold in reserves, equating to approximately two months expenditure on overheads. The actual reserbts at the year end 44Ere £11.3￿ {2019..£6,0871 wh￿h is more than uthat Was requirgd, ond the s￿￿U5 will be transferred lo South Asia al the next donation. The tru8tees' annu8J report vas approv￿1 on 24 September 20218nd signed on behalf of the board of trustses by.. P C Van Ha88ter Trustee W Tumer Trustee

Empart (UK)

Independent Examiner's Report to the Trustees of Empart (UK)

Year ended 31 December 2020

I report to the trustees on my examination of the financial statements of Empart (UK) ('the charity') for the year ended 31 December 2020.

Responsibilities and basis of report

As the trustees of the charity you are responsible for the preparation of the financial statements in accordance with the requirements of the Charities Act 2011 (‘the Act’).

I report in respect of my examination of the charity's financial statements carried out under section 145 of the 2011 Act and in carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the Act.

Independent examiner's statement

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

  1. accounting records were not kept in respect of the charity as required by section 130 of the Act; or

  2. the financial statements do not accord with those records; or

  3. the financial statements do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a ‘true and fair' view which is not a matter considered as part of an independent examination.

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

Michael W Reed Independent Examiner

Russell House Greenwell Road Alnwick Northumberland NE66 1HB

24 September 2021

4

Empart (UK)

Statement of Financial Activities

Year ended 31 December 2020

2020 2019
Unrestricted Restricted
funds funds Total funds Total funds
Note £ £ £ £
Income and endowments
Donations and legacies 4 17,943 63,956 81,898 52,304
Other trading activities 5 2,887
Other income 6 20,952 20,952 46,793
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Total income 38,895 63,956 102,850 101,984
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Expenditure
Expenditure on raising funds:
Costs of other trading activities 7 4,115 4,115 12,496
Expenditure on charitable activities 8,9 12,314 63,956 76,269 52,880
Other expenditure 12 17,157 17,157 32,597
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Total expenditure 33,586 63,956 97,541 97,973
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Net income and net movement in funds 5,309 5,309 4,011
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Reconciliation of funds
Total funds brought forward 6,087 6,087 2,076
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Total funds carried forward 11,396 11,396 6,087
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The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.

The notes on pages 7 to 15 form part of these financial statements.

5

Empart (UK) statement of Financ5al Posltion 31 December 2020 2020 2019 Flxed assets Tangible fued assets 17 1,0 941 Stocks Debtors Cash at bank and in hand 18 19 2,342 1,441 45.333 2,342 13,037 49,116 15,483 Creditors: amounts falllng due wlthln one year Net curr•nt assets 38.816 10.337 10.300 11,3 11,3 5,146 6,087 6.087 Total assets less ¢unent Ilabllftl8s Net assets Funds of the charlty Unrestricted funds 11,396 11,396 6,087 6,087 Totsl ¢hartty funds These financigl statements were approved by the board of trustees and authorised for issue on 24 September 2021, and are signed on behalf of the board by: P C Van Haasler Trustee W Tumer Trustee Th• notss on paw 7 to 16 fomi port ofthe8e financial ststement

Empart (UK)

Notes to the Financial Statements

Year ended 31 December 2020

1. General information

The charity is a public benefit entity and a registered charity in England and Wales and is unincorporated. The address of the principal office is 24 Dacre Street, Morpeth, Northumberland, NE61 1HW.

2. Statement of compliance

These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland', the 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) (Charities SORP (FRS 102)) and the Charities Act 2011.

3. Accounting policies

Basis of preparation

The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through income or expenditure.

The financial statements are prepared in sterling, which is the functional currency of the entity.

Going concern

There are no material uncertainties about the charity's ability to continue.

Judgements and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

Fund accounting

Unrestricted funds are available for use at the discretion of the trustees to further any of the charity's purposes.

Designated funds are unrestricted funds earmarked by the trustees for particular future project or commitment.

Restricted funds are subjected to restrictions on their expenditure declared by the donor or through the terms of an appeal, and fall into one of two sub-classes: restricted income funds or endowment funds.

7

Empart (UK)

Notes to the Financial Statements (continued)

Year ended 31 December 2020

3. Accounting policies (continued)

Incoming resources

All incoming resources are included in the statement of financial activities when entitlement has passed to the charity; it is probable that the economic benefits associated with the transaction will flow to the charity and the amount can be reliably measured. The following specific policies are applied to particular categories of income:

Resources expended

Expenditure is recognised on an accruals basis as a liability is incurred. Expenditure includes any VAT which cannot be fully recovered, and is classified under headings of the statement of financial activities to which it relates:

All costs are allocated to expenditure categories reflecting the use of the resource. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs are apportioned between the activities they contribute to on a reasonable, justifiable and consistent basis.

Tangible assets

Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

8

Notes to the Financial Statements (continued)

Empart (UK)

Year ended 31 December 2020

3. Accounting policies (continued)

Tangible assets (continued)

An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other recognised gains and losses, unless it reverses a charge for impairment that has previously been recognised as expenditure within the statement of financial activities. A decrease in the carrying amount of an asset as a result of revaluation, is recognised in other recognised gains and losses, except to which it offsets any previous revaluation gain, in which case the loss is shown within other recognised gains and losses on the statement of financial activities.

Depreciation

Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:

Fixtures and fittings - 33% straight line

Impairment of fixed assets

A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date.

For the purposes of impairment testing, when it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cashgenerating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that largely independent of the cash inflows from other assets or groups of assets.

For impairment testing of goodwill, the goodwill acquired in a business combination is, from the acquisition date, allocated to each of the cash-generating units that are expected to benefit from the synergies of the combination, irrespective of whether other assets or liabilities of the charity are assigned to those units.

Stocks

Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing the stock to its present location and condition.

Financial instruments

A financial asset or a financial liability is recognised only when the charity becomes a party to the contractual provisions of the instrument.

Basic financial instruments are initially recognised at the amount receivable or payable including any related transaction costs.

Current assets and current liabilities are subsequently measured at the cash or other consideration expected to be paid or received and not discounted.

Debt instruments are subsequently measured at amortised cost.

9

Empart (UK)

Notes to the Financial Statements (continued)

Year ended 31 December 2020

3. Accounting policies (continued)

Financial instruments (continued)

Where investments in shares are publicly traded or their fair value can otherwise be measured reliably, the investment is subsequently measured at fair value with changes in fair value recognised in income and expenditure. All other such investments are subsequently measured at cost less impairment.

Other financial instruments, including derivatives, are initially recognised at fair value, unless payment for an asset is deferred beyond normal business terms or financed at a rate of interest that is not a market rate, in which case the asset is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

Other financial instruments are subsequently measured at fair value, with any changes recognised in the statement of financial activities, with the exception of hedging instruments in a designated hedging relationship.

Financial assets that are measured at cost or amortised cost are reviewed for objective evidence of impairment at the end of each reporting date. If there is objective evidence of impairment, an impairment loss is recognised under the appropriate heading in the statement of financial activities in which the initial gain was recognised.

For all equity instruments regardless of significance, and other financial assets that are individually significant, these are assessed individually for impairment. Other financial assets are either assessed individually or grouped on the basis of similar credit risk characteristics.

Any reversals of impairment are recognised immediately, to the extent that the reversal does not result in a carrying amount of the financial asset that exceeds what the carrying amount would have been had the impairment not previously been recognised.

4. Donations and legacies

Unrestricted Restricted Total Funds
Funds Funds 2020
£ £ £
Donations
Donations 17,943 63,956 81,898
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Unrestricted Restricted Total Funds
Funds Funds 2019
£ £ £
Donations
Donations 12,644 39,660 52,304
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10

Empart (UK)

Notes to the Financial Statements (continued)

Year ended 31 December 2020

5. Other trading activities

Unrestricted Total Funds Unrestricted Total Funds
Funds 2020 Funds 2019
£ £ £ £
Fundraising events 2,215 2,215
Sales 672 672
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2,887 2,887
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6. Other income
Unrestricted Total Funds Unrestricted Total Funds
Funds 2020 Funds 2019
£ £ £ £
Mission teams 10,386 10,386
Donated goods 20,952 20,952 36,407 36,407
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20,952 20,952 46,793 46,793
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7. Costs of other trading activities
Unrestricted Total Funds Unrestricted Total Funds
Funds 2020 Funds 2019
£ £ £ £
Costs of other trading activities -
Staging events 4,115 4,115 12,496 12,496
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8. Expenditure on charitable activities by fund type
Unrestricted Restricted Total Funds
Funds Funds 2020
£ £ £
The advancement of religion. 47,963 47,963
The prevention or relief of poverty. 210 210
To advance education. 1,915 1,915
The relief of financial need and suffering among
victims of natural or other kinds of disaster. 13,868 13,867
Support costs 12,314 12,314
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12,314 63,956 76,269
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Unrestricted Restricted Total Funds
Funds Funds 2019
£ £ £
The advancement of religion. 37,751 37,751
The prevention or relief of poverty. 527 527
To advance education. 1,382 1,384
The relief of financial need and suffering among
victims of natural or other kinds of disaster.
Support costs 13,220 13,218
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13,220 39,660 52,880
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11

Empart (UK)

Notes to the Financial Statements (continued)

Year ended 31 December 2020

9. Expenditure on charitable activities by activity type

Activities
undertaken Total funds Total fund
directly Support costs 2020 2019
£ £ £ £
The advancement of religion. 47,963 11,474 59,437 50,969
The prevention or relief of poverty. 210 210 527
To advance education. 1,915 1,915 1,384
The relief of financial need and
suffering among victims of natural or
other kinds of disaster. 13,867 13,867
Governance costs 840 840
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63,955 12,314 76,269 52,880
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10. Analysis of support costs

Analysis of
support costs
activity 1 Total 2020 Total 2019
£ £ £
Staff costs 3,407 3,407 6,844
Premises 2,814 2,814 2,381
Communications and IT 2,701 2,701 1,388
General office 1,960 1,960 811
Support costs - Other costs 592 592 1,779
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11,474 11,474 13,203
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11. Analysis of grants
2020 2019
£ £
Grants to institutions
Grants to an institution 37,470 29,533
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Total grants 37,470 29,533
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The name of the institution has not been disclosed as this could be prejudicial to the grant made or the recipient institution or the individual working at the recipient institution.

12. Other expenditure

Unrestricted Total Funds Unrestricted Total Funds
Funds 2020 Funds 2019
£ £ £ £
Consultancy 17,157 17,157 22,663 22,663
Mission teams 9,934 9,934
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17,157 17,157 32,597 32,597
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12

Empart (UK)

Notes to the Financial Statements (continued)

Year ended 31 December 2020

13. Net income
Net income is stated after charging/(crediting):
2020 2019
£ £
Depreciation of tangible fixed assets 416 141
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14. Independent examination fees
2020 2019
£ £
Fees payable to the independent examiner for:
Independent examination of the financial statements 840
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15. Staff costs
The total staff costs and employee benefits for the reporting period are analysed as follows:
2020 2019
£ £
Wages and salaries 3,407 6,844
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The average head count of employees during the year was 1 (2019: 1).

No employee received employee benefits of more than £60,000 during the year (2019: Nil).

16. Trustee remuneration and expenses

During the year £7,740(2019:£14,488) was paid to P Van Haaster in her role as European Chief Operating Officer. Travel expenses of £195 (2019:£nil) was paid to W Turner. No other trustees received any remuneration or benefits.

17. Tangible fixed assets

Fixtures and
fittings
£
Cost
At 1 January 2020 1,082
Additions 571
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At 31 December 2020 1,653
�������
Depreciation
At 1 January 2020 141
Charge for the year 416
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At 31 December 2020 557
�������
Carrying amount
At 31 December 2020 1,096
�������
At 31 December 2019 941
�������

13

Empart (UK)

Notes to the Financial Statements (continued)

Year ended 31 December 2020

18. Stocks
2020 2019
£ £
Donated goods for distribution 2,342 2,342
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19. Debtors
2020 2019
£ £
Prepayments and accrued income 1,441 104
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20. Creditors: amounts falling due within one year
2020 2019
£ £
Trade creditors 1,152
Accruals and deferred income 37,664 10,337
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38,816 10,337
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21. Analysis of charitable funds
Unrestricted funds
At At
1 January 202 31 December
0 Income Expenditure 2020
£ £ £ £
General funds 6,087 38,895 (33,586) 11,396
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At At
1 January 201 31 December
9 Income Expenditure 2019
£ £ £ £
General funds 2,076 62,324 (58,313) 6,087
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Restricted funds
At At
1 January 202 31 December
0 Income Expenditure 2020
£ £ £ £
Restricted fund 63,956 (63,956)
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At At
1 January 201 31 December
9 Income Expenditure 2019
£ £ £ £
Restricted fund
����
39,660
��������
(39,660)
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14

Empart (UK)

Notes to the Financial Statements (continued)

Year ended 31 December 2020

22. Analysis of net assets between funds

Unrestricted Restricted Total Funds
Funds Funds 2020
£ £ £
Tangible fixed assets 1,096 1,096
Current assets 12,293 36,823 49,116
Creditors less than 1 year (1,993) (36,823) (38,816)
�������� �������� ��������
Net assets 11,396 11,396
�������� �������� ��������
Unrestricted Restricted Total Funds
Funds Funds 2019
£ £ £
Tangible fixed assets 941 941
Current assets 5,146 10,337 15,483
Creditors less than 1 year (10,337) (10,337)
������� �������� ��������
Net assets 6,087 6,087
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15

Empart (UK)

Year ended 31 December 2020

Management Information

The following pages do not form part of the financial statements.

16

Empart (UK)

Detailed Statement of Financial Activities

Year ended 31 December 2020

2020 2019
£ £
Income and endowments
Donations and legacies
Donations 81,898 52,304
�������� ��������
Other trading activities
Fundraising events 2,215
Sales 672
���� �������
2,887
���� �������
Other income
Mission teams 10,386
Donated goods 20,952 36,407
�������� ��������
20,952 46,793
�������� ��������
��������� ���������
Total income 102,850 101,984
��������� ���������

17

Empart (UK)

Detailed Statement of Financial Activities (continued)

Year ended 31 December 2020

2020 2019
£ £
Expenditure
Costs of other trading activities
Purchases 2,182
Advertising 4,115 10,314
��������� ���������
4,115 12,496
��������� ���������
Expenditure on charitable activities
Wages and salaries 3,407 6,844
Rent 1,892 1,776
Entertaining 105 82
Light and heat 226 222
Stripe processing fees 181 108
Insurance 280 134
It software consumables 2,701 1,388
Bank charges 15
Trave 472 1,667
Legal and professional fees 855 30
Telephone 226 222
Office costs 1,553 589
Depreciation 416 141
Aid and development 14,077 527
Community transformation team 9,557 1,800
Education and residential hostel 1,915 1,384
Transformation services 38,406 35,951
�������� ��������
76,269 52,880
�������� ��������
Other expenditure
Consultancy 17,157 22,663
Mission teams 9,934
�������� ��������
17,157 32,597
�������� ��������
�������� ��������
Total expenditure 97,541 97,973
�������� ��������
�������� ��������
Net income 5,309 4,011
�������� ��������

18

Empart (UK)

Notes to the Detailed Statement of Financial Activities

Year ended 31 December 2020

2020 2019
£ £
Costs of other trading activities
Costs of other trading activities - Staging events
Fund raising events 2,182
Advertising 4,115 10,314
������� ��������
4,115 12,496
������� ��������
������� ��������
Costs of other trading activities 4,115 12,496
������� ��������

19

Empart (UK)

Notes to the Detailed Statement of Financial Activities (continued)

Year ended 31 December 2020

2020 2019
£ £
Expenditure on charitable activities
The advancement of religion.
Activities undertaken directly
Community transformation teams 9,557 1,800
Transformation centres 38,406 35,951
�������� ��������
47,963 37,751
�������� ��������
Support costs
Salaries 3,407 6,844
Rent 1,892 1,776
Entertainment 105 82
Light & heat 226 222
Stripe processing fees 181 108
Insurance 280 134
It software and consumables 2,701 1,388
Bank charges 15
Travel expenses 472 1,667
Legal and professional fees 15 30
Telephone 226 222
Office costs 1,553 589
Depreciation 416 141
�������� ��������
11,474 13,218
�������� ��������
The prevention or relief of poverty.
Activities undertaken directly
Aid and development (210) (527)
���� ����
To advance education.
Activities undertaken directly
Schools and educational 1,915 1,384
������� �������
The relief of financial need and suffering among victims of natural or other kinds of disaster.
Activities undertaken directly
Aid and development 13,867
�������� ����
Governance costs
Governance costs - accountancy fees 840
���� ����
�������� ��������
Expenditure on charitable activities 76,269
��������
52,880
��������

20