## **OLIVET ASSEMBLY**
**TRUSTEES’ REPORT AND FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 AUGUST 2020**
Registered Company No: 09571506 Registered Charity No: 1163688
## **OLIVET ASSEMBLY**
## **PERIOD ENDED 31 AUGUST 2020**
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|**CONTENTS**|**Page**|
|---|---|
|Reference and administrative information|1|
|Trustees’ report|2 – 4|
|Independent Auditor’s Report|5 - 7|
|Statement of financial activities|8|
|Balance sheet|9|
|Statement of Cash Flows|10|
|Notes to the financial statements|11 - 18|
**OLIVET ASSEMBLY (A company limited by guarantee)**
## **REFERENCE AND ADMINISTRATIVE INFORMATION**
## **FOR THE PERIOD ENDED 31 AUGUST 2020**
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|**Trustees and Directors**|Youngho Bae|
|---|---|
||Maria Janeckova|
||Jaewon Kim|
|**Manager**|Dr Andrew Clark|
|**Charity Registration Number**|1163688|
|**Company Registration Number**|09571506|
|**Principal Address and Registered Office**|Pilgrim Hall|
||Lewes Road|
||Uckfield|
||East Sussex|
||TN22 5RE|
|**Bankers**|Natwest|
||London Bridge|
||P O Box 35|
||10 Southwark Street|
||London|
||SE1 1TJ|
|**Independent Auditor**|Haines Watts High Wycombe Limited|
||Suite G02 Ashton Court|
||Kingsmead Business Park|
||Frederick Place|
||High Wycombe|
||Buckinghamshire|
||HP11 1JU|
1
**OLIVET ASSEMBLY (A company limited by guarantee)**
## **TRUSTEES’ REPORT**
## **FOR THE PERIOD ENDED 31 AUGUST 2020**
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The trustees, who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the financial statements of the charity for the period ended 31 August 2020. The trustees have adopted the provisions of Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (Second Edition effective 1 January 2019).
Olivet Assembly is a private charitable company limited by guarantee. It was registered with Companies House on 1 May 2015 and the Charity Commission on 22 September 2015. The directors of the charitable company are its Trustees for the purpose of charity law. None of the Trustees has any beneficial interest in the company.
These financial statements cover the 15 month period from 1 June 2019 to 31 August 2020.
## **Objectives and Activities**
The charity's objects ('objects') are specifically restricted to the following:
1. For the public benefit. The advancement of religion according to the doctrines of the worldwide Olivet Assembly church;
2. For the public benefit. The pursuit of any purpose charitable according to the law of England and Wales which is consistent with the advancement of religion of Olivet Assembly.
## **Our purposes**
Our main objectives for the period were:
- Set up Olivet Assembly operation with right model to achieve its main purposes
- Enable mission workers in UK and abroad to advance the religion according doctrines of Olivet Assembly
- Promote activities of Olivet Assembly which serve the public
Our activities for achieving the charity’s aims and objectives were:
- Running church services
- Sending out and supporting missionaries in a number of countries
- Biblical lectures and seminars
- Gatherings and events during some holidays as Easter, Pentecost and Christmas
- Organising educational classes opened to the public (Art class and language classes)
## **Achievements and Performance**
In a year that was severely affected by the COVID-19 pandemic, the charity successfully navigated a challenging economic environment and cemented its relationship with numerous corporate and individual donors who share a passion for Olivet Assembly’s mission and works. The charity was therefore able to show a strong financial resilience and stability through the year.
Local and foreign mission works were restricted somewhat by the pandemic, especially during lockdown periods. However, the charity was still able to support a large majority of its core missions and works. A flexibility in switching much of our outreach and activities to online livestreams and recordings proved invaluable to many, and allowed activities such as Bible studies, prayer meetings, spiritual counselling sessions, online Christian retreats and conferences, seminars and workshops, and educational courses to continue in a changed but extremely useful way. A full range of systems, policies and processes were implemented to ensure the charity’s works going forwards will be COVID-19 safe, according to government guidelines.
Less on-site activity allowed the charity to undertake various refurbishment projects at Pilgrim Hall, and more neglected parts of this historic Christian building were upgraded. The charity also expanded its educational activities, successfully acquiring Global London College, with a location in the heart of central London.
2
**OLIVET ASSEMBLY (A company limited by guarantee)**
## **TRUSTEES’ REPORT (continued)**
## **FOR THE PERIOD ENDED 31 AUGUST 2020**
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## **Financial Review**
Income for the period was £1,646,833 (2019: £1,227,217), arising mainly from church offerings and donations including contributions of £119,889 from the related charity, World Olivet Assembly (WOA - USA). Expenditure was £784,906 (2019: £413,668), of which £50,985 (2019: £47,001) was spent to support the charity’s missionaries resident abroad.
## Investment powers and policy
The trustees have the powers to make investments on behalf of the charity as they deem fit. At the moment, the charity’s risk profile indicates that investments should be held in low risk assets. Consequently, investments at the Balance Sheet date are in bank account balances.
## Reserves policy
The charity received substantial funds during the period, most of which was put towards the acquisition of an educational institution as a wholly owned subsidiary of the charity in May 2020. The Pilgrim Hall Fund was the only restricted fund at the period end and had a balance of £734,276 (2019: £750,377).
Free reserves at the end of the period (the charity’s unrestricted funds less any net capital costs not covered by restricted funds) was a surplus of £115,372 (2019: £18,604 deficit). Given the increased level of activities, the target level of free reserves of at least 3 months of expenditure, is now equivalent to £150k-175k and this remains the goal. The charity will work towards achieving this in the coming years.
## Risk Management
The trustees have identified the key risks faced by the charity and have taken appropriate steps to mitigate these risks. The key risks relate to the charity’s ability to generate and sustain its funding to meet its various activities and obligations. Trustees ensure that the charity has a low fixed cost base relative to its recurring income so that it can align its costs with any changes in income.
This issue is regularly revisited by the trustees to ensure that any new risks are identified and suitably addressed.
Due to the COVID-19 Pandemic, new COVID-19 Policies and Procedures have been put into place at the charity’s premises, to ensure adherence to government guidelines to mitigate/minimise the risk of COVID-19 spreading as a result of the charity’s activities. The charity also holds adequate cash reserves and has sufficient flexibility to align its expenditure with available resources.
## **Plans for future periods**
As the pandemic restrictions ease through the coming year, the charity will look to focus on expanding its educational courses, with evidence of strong and continued interest in our course offerings. There are plans to expand our London missions for church services and evangelism, and to support mission expansions throughout Europe.
## **Structure, Governance and Management**
The charitable company is governed by its Memorandum and Articles of Association dated 1 May 2015. The Trustees during the year are as listed under the reference and administrative information.
The Trustees are recruited according to their knowledge, skill and experience of the themes and activities undertaken by the charity; and in accordance with the requirements for the governance of charities.
The Trustees are kept informed on charity sector issues by resources provided by our financial and legal advisors. The day to day running of the charity is delegated to Dr Andrew Clark who acts as Manager.
3
**OLIVET ASSEMBLY (A company limited by guarantee)**
## **TRUSTEES’ REPORT (continued)**
## **FOR THE PERIOD ENDED 31 AUGUST 2020**
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## **Structure, Governance and Management (continued)**
## Related Parties
World Olivet Assembly located in USA supports the activities of the charity and at times assists with funds to help cover capital and some of the operational costs. Whilst both organisations share a common purpose, they operate independently of each other.
## Subsidiary undertaking
During the year, the charity acquired 100% of the share capital of Global London College Ltd (Company Number: 07366665) at a cost of £719,212. This is shown as an investment in subsidiary undertaking in the balance sheet. Further information and the results of the subsidiary and included in the Accounting Policies and in Note 7 of these financial statements.
## **Statement of Trustees' Responsibilities**
The trustees (who are also directors of Olivet Assembly for the purposes of company law) are responsible for preparing the Trustees' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
Company law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable for that year. In preparing these financial statements, the trustees are required to:
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles in the Charities SORP;
- make judgments and accounting estimates that are reasonable and prudent;
- state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business.
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 to 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.
## In so far as the Board of Trustees is aware:
- There is no relevant audit information of which the charitable company’s auditor is unaware
- The Board of Trustees has taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditor is aware of that information.
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………………………………………. **Jaewon Kim Director/Trustee**
4
**OLIVET ASSEMBLY**
## **INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES OF OLIVET ASSEMBLY**
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## **Opinion**
We have audited the financial statements of Olivet Assembly (the ‘charitable company’) for the period ended 31 August 2020 which comprise Statement of Financial Activities, Balance Sheet, Statement of Cash Flows and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including 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 charitable company’s affairs as at 31 August 2020 and of its income and expenditure, for the period then ended;
- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
- have been prepared in accordance with the requirements of the Companies Act 2006.
## **Basis for opinion**
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company 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**
We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:
- the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or
- the trustees have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the charitable company’s ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue.
However, not all future events or conditions can be predicted. The COVID-19 viral pandemic is one of the most significant economic events for the UK with unprecedented levels of uncertainty of outcomes. It is therefore difficult to evaluate all of the potential implications on the charitable company's activities, suppliers and wider economy. The trustees’ view on the impact of COVID-19 is disclosed in the accounting policies note 1.2.
## **Other information**
The trustees are responsible for the other information. The other information comprises the information included in the trustees’ report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the 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.
5
**OLIVET ASSEMBLY**
## **INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES OF OLIVET ASSEMBLY (CONTINUED)**
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## **Opinions on other matters prescribed by the Companies Act 2006**
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the trustees' report for the financial period for which the financial statements are prepared is consistent with the financial statements; and
- the trustees report 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 charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the trustees report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
- adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
- the financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of directors’ remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit **;** or
- the trustees were not entitled to prepare the financial statements in accordance with the small companies’ regime and take advantage of the small companies’ exemption in preparing the directors’ report and from the requirement to prepare a strategic report.
## **Responsibilities of trustees**
As explained more fully in the trustees’ responsibilities statement set out on page 4, 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’s responsibilities for the audit of the financial statements**
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: https://www.frc.org.uk/Our-Work/Audit/Audit-and-assurance/Standards-andguidance/Standards-and-guidance-for-auditors/Auditors-responsibilities-for-audit/Description-of-auditorsresponsibilities-for-audit.aspx. This description forms part of our auditor’s report.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
6
**OLIVET ASSEMBLY**
## **INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES OF OLIVET ASSEMBLY (CONTINUED)**
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## **Use of our 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. Our audit work has been undertaken so that we might state to the charitable company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
**Kapil Davda (Senior Statutory Auditor) for and on behalf of Haines Watts**
............... May 2021 28
**Chartered Accountants Statutory Auditor**
Suite G02, Ashton Court Kingsmead Business Park Frederick Pl High Wycombe Buckinghamshire HP11 1JU
7
**OLIVET ASSEMBLY (A company limited by guarantee)**
## **STATEMENT OF FINANCIAL ACTIVITIES**
## **FOR THE PERIOD ENDED 31 AUGUST 2020**
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|**INCOME AND EXPENDITURE**||**Unrestricted**|**Restricted**|**Total**|**Total**|
|---|---|---|---|---|---|
|||**funds**|**funds**|**31 August**|**31 May**|
|||||**2020**|**2019**|
||**Notes**|**£**|**£**|**£**|**£**|
|**Income and endowments from:**||||||
|Donations and legacies|2|1,603,780|-|1,603,780|1,227,217|
|Other trading activities - Rent||43,053|-|43,053|-|
|||-------------------|-----------------|-----------------|-----------------|
|**Total Income**||1,646,833|-|1,646,833|1,227,217|
|||-------------------|-----------------|-----------------|-----------------|
|**Expenditure on:**|3|||||
|**Charitable activities**||768,805|16,101|784,906|413,668|
|||------------------|------------------|------------------|------------------|
|**Total Expenditure**||768,805|16,101|784,906|413,668|
|||--------------------|--------------------|--------------------|--------------------|
|Net income/(expenditure)||878,028|(16,101)|861,927|813,549|
|Transfers between funds|11|-|-|-|-|
|||--------------------|--------------------|--------------------|--------------------|
|**Net movement in funds**||878,028|(16,101)|861,927|813,549|
|Total funds brought forward||576,276|750,377|1,326,653|513,104|
|||---------------------|---------------------|---------------------|---------------------|
|**Total funds carried forward**||1,454,304|734,276|2,188,580|1,326,653|
|||===========|===========|===========|===========|
All recognised gains and losses are included in the Statement of Financial Activities.
All the charity’s activities are classified as continuing.
The accompanying notes form an integral part of these financial statements.
8
**OLIVET ASSEMBLY Company number: 09571506 (A company limited by guarantee)**
## **BALANCE SHEET**
## **AS AT 31 AUGUST 2020**
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|||**31 August 2020**|**31 August 2020**|**31 May**|**2019**|
|---|---|---|---|---|---|
||**Notes**|**£**|**£**|**£**|**£**|
|**Fixed Assets**||||||
|Tangible Fixed Assets|6||2,548,200||2,563,178|
|Investment in subsidiary undertaking|7||719,212||-|
||||---------------------||---------------------|
||||3,267,412||2,563,178|
|**Current Assets**||||||
|Debtors|8|52,439||18,083||
|Cash at bank and in hand||82,847||21,021||
|||------------------||------------------||
|||135,286||39,104||
|**Current liabilities**||||||
|**Creditors:**amounts falling due||||||
|within one year|9|(104,812)||(132,682)||
|||------------------||------------------||
|**Net Current Assets/(Liabilities)**|||30,474||(93,578)|
||||---------------------||---------------------|
|**Total assets less current liabilities**|||3,297,886||2,469,600|
|**Creditors:**amounts falling due||||||
|After more than one year|10||(1,109,306)||(1,142,947)|
||||---------------------||---------------------|
|**Total Net Assets**|||2,188,580||1,326,653|
||||===========||===========|
|**Funds:**||||||
|Restricted funds|12||734,276||750,377|
|Unrestricted funds|12||1,454,304||576,276|
||||---------------------||---------------------|
|**TOTAL FUNDS**|||2,188,580||1,326,653|
||||===========||===========|
@9" =$/./>$.I %&.&","/&% L"'" .--'+?"( [0 &9" [+.'( ./ .A&9+'$%"( =+' $%%A" +/ C; N.0 C3C7 ./( %$#/"( +/ $&% ["9.I= [02
……………………………….
**Jaewon Kim Director/Trustee**
The accompanying notes form an integral part of these financial statements.
9
**OLIVET ASSEMBLY (A company limited by guarantee)**
## **STATEMENT OF CASH FLOWS**
## **FOR THE PERIOD ENDED 31 AUGUST 2020**
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|||||**31 August**|**31 May**|
|---|---|---|---|---|---|
|||||**2020**|**2019**|
|||||**£**|**£**|
|**Cash provided by operating activities**||||806,253|888,192|
|||||-------------------|-------------------|
|**Cash flows from investing activities**||||||
|Purchase of tangible fixed assets||||(1,498)|(2,312,926)|
|Purchase of fixed asset investment||||(719,212)|-|
|||||----------------------|----------------------|
|**Cash used in investing activities**||||(720,710)|(2,312,926)|
|**Cash flows from financing activities**||||||
|Repayment of borrowing||||(23,717)|(32,079)|
|Cash inflow from new borrowing||||-|1,250,000|
|||||----------------------|----------------------|
|**Cash (used in)/provided by financing activities**||||(23,717)|1,217,921|
|||||----------------------|----------------------|
|**Increase/(decrease) in cash and cash equivalents in**|**the**|**period**||61,826|(206,813)|
|Cash and cash equivalents at the beginning of the period||||21,021|227,834|
|||||------------------|------------------|
|**Total cash and cash equivalents at period end**||||82,847|21,021|
|||||==========|==========|
|**Analysis of Cash and Cash Equivalents**||||**2020**|**2019**|
|||||**£**|**£**|
|Cash at bank and in hand||||82,847|21,021|
|||||=========|==========|
|**Analysis of changes in net funds**|**At**|**1 June**|**Cash**|**Other non-cash**|**At 31 August**|
|||**2019**|**flows**|**changes**|**2020**|
|||**£**|**£**|**£**|**£**|
|Cash||21,021|61,826|-|82,847|
||==========||==========|==========|==========|
|**Reconciliation of net movement in funds to net cash inflow from**|||**Operating**|**Activities**||
|||||**2020**|**2019**|
|||||**£**|**£**|
|**Net movement in funds**||||861,927|813,549|
|Add back depreciation||||16,476|12,881|
|(Increase)/decrease in debtors||||(34,356)|8,026|
|(Decrease)/increase in creditors||||(37,794)|53,736|
|||||--------------------|--------------------|
|**Net cash provided by/(used in) operating activities**||||806,253|888,192|
|||||==========|==========|
10
**OLIVET ASSEMBLY (A company limited by guarantee)**
**NOTES TO THE FINANCIAL STATEMENTS**
## **FOR THE PERIOD ENDED 31 AUGUST 2020**
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## **1. ACCOUNTING POLICIES**
## **1.1. Basis of accounting**
The financial statements of the charitable company, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) 'Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (Second Edition effective 1 January 2019)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', the Charities Act 2011 and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.
## _**Comparative information**_
The charity changed its accounting reference date from 31 May to 31 August commencing from the period ended 31 August 2020. The comparative figures in these financial statements therefore reflect the information for the year ended 31 May 2019.
## **1.2. Going Concern**
The trustees, after giving consideration to its activities and financial projections, consider there are no material uncertainties about the Charity’s ability to continue as a going concern. The financial statements have therefore been prepared on a going concern basis. In reaching this conclusion, the Trustees have also given due consideration the impact of the Covid-19 pandemic on the activities of the charity and have taken steps to mitigate its impact on the charity’s ability to continue in operational existence for the foreseeable future.
## **1.3. Trading subsidiary and consolidated accounts**
On 5 May 2020, the charity acquired in cash, 100% of the share capital of a company, Global London College (incorporated in the England and Wales; Company number 07366665).
The accounts of the subsidiary have not been consolidated in these financial statements on the basis that the Trustees consider its activities are immaterial to these financial statements as at 31 August 2020. The activities of the company are disclosed in Note 7 of these financial statements.
## **1.4. Critical accounting estimates and areas of judgment**
In the application of the accounting policies, Trustees are required to make judgements, estimates and assumptions about the carrying value of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an on-going basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period and future periods. The significant areas of assumption are in respect of depreciation of fixed assets and valuation of the investment in the subsidiary.
The rates of write down are shown in the Tangible Fixed Assets note below. The Trustees are satisfied that these write down rates are a reasonable reflection of the expected useful life of the assets in each class.
An impairment review will be carried out annually on the valuation of the charity’s investment in its subsidiary – Global London College Ltd. The company was acquired on 5 May 2020 and having taken into consideration the losses incurred during the current period of operation due to the Covid-19 pandemic, and also given the time between the acquisition and the period end and projected cash flows, the Trustees consider that there are no indications of any material impairment in the value of the investment at the end of the period.
## **1.5. Fund accounting**
Unrestricted funds are available for use at the discretion of the trustees in furtherance of the general objectives of the charity. Restricted funds are subjected to restrictions on their expenditure imposed by the donor. The purposes and uses of the restricted funds are set out in the notes to the accounts.
11
**OLIVET ASSEMBLY (A company limited by guarantee)**
**NOTES TO THE FINANCIAL STATEMENTS (continued)**
## **FOR THE PERIOD ENDED 31 AUGUST 2020**
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## **1. ACCOUNTING POLICIES (continued)**
## **1.6. Income**
All income is included in the Statement of Financial Activities when the charity is legally entitled to the income, there is probability of receipt and the amount can be quantified with reasonable accuracy, except as follows:
- When donors specify that income given to the charity must be used in future accounting periods, then the income is deferred to the specified period.
- When donors impose conditions which have to be fulfilled before the charity becomes entitled to use such income, the income is deferred until the preconditions for use are met.
- When donors specify that income is for a particular restricted purpose which does not amount to preconditions regarding entitlement, the income is recognised as income when receivable.
No amounts are included in the financial statements for services donated by volunteers.
Income from investments is included in the Statement of Financial Activities in the period in which it is received.
## **1.7. Expenditure**
Expenditure is recognised on an accrual basis as a liability is incurred. Expenditure includes any VAT which cannot be fully recovered and is reported as part of the expenditure to which it relates. Support costs which cannot be directly attributed to particular projects are apportioned in proportion to the direct staff cost allocated to the project. Governance costs, which form part of Support costs include expenditure on the governance of the charity and its assets and are primarily associated with constitutional and statutory requirements.
Charitable expenditure consists of all expenditure relating to the objects of the Charity. All costs are directly attributable to the activities under which they have been analysed.
## **1.8. Tangible fixed assets**
Expenditure on fixed assets is capitalised where the cost (or the value if donated) is in excess of £1,000; otherwise it is written off through the Statement of Financial Activities. Depreciation is calculated by the straight line method to write off the cost/value, less anticipated residual value, over the expected useful lives of assets as follows:
Land and buildings 50 years
## **1.9. Creditors**
Creditors 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. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.
## **1.10. Operating leases**
Rentals under operating leases are charged on a straight line basis over the lease term.
## **1.11. Financial instruments**
The Charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are recognised at transaction value and subsequently measured at their settlement value.
12
**OLIVET ASSEMBLY (A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS (continued)**
## **FOR THE PERIOD ENDED 31 AUGUST 2020**
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## **2. DONATIONS AND LEGACIES**
|**DONATIONS AND LEGACIES**|||
|---|---|---|
||**2020**|**2019**|
||**£**|**£**|
|Tithes and offerings|1,453,226|949,191|
|Donations from World Olivet Assembly (USA)|119,889|278,026|
|Government furlough grant|30,665|-|
||-----------------|-----------------|
||1,603,780|1,227,217|
||==========|==========|
The donations from World Olivet Assembly in 2019 were restricted funds to be utilised only for the purchase of a property. All other funds are unrestricted.
|**3.**|**EXPENDITURE**|**People**|**Premises**|**Other**|**Governance**|**2020**|**2019**|
|---|---|---|---|---|---|---|---|
|||**support**|**costs**|**costs**||||
|||**£**|**£**|**£**|**£**|**£**|**£**|
||**Raising funds**|||||||
||Fundraising activities|-|-|-|-|-|-|
||**Charitable activities:**|||||||
||Church services and activities|55,080|248,260|-|-|303,340|139,984|
||Support of missions and other
Christian Ministries|15,737|76,388|50,985|-|143,110|89,671|
||Education|-|19,097|71,661|-|90,758|69,863|
||Donations|-|-|-|-|-|11,950|
||Support costs|7,869|38,194|191,642|9,993|247,698|102,200|
|||-----------------|-----------------|-----------------|----------------|-----------------|-----------------|
||**_Total_**|78,686|381,939|314,288|9,993|784,906|413,668|
|||=========|=========|=========|=========|=========|=========|
Included in People Support are staff costs of £78,686 (2019: 26,087) - see Note 4.
|**COMPARATIVE EXPENDITURE**|**People**|**Premises**|**Other**|**Governance**|**2019**|
|---|---|---|---|---|---|
|**(2019)**|**support**|**costs**|**costs**|||
||**£**|**£**|**£**|**£**|**£**|
|**Raising funds**||||||
|Fundraising activities|-|-|-|-|-|
|**Charitable activities:**||||||
|Church services and activities|18,261|121,723|-|-|139,984|
|Support of missions and other
Christian Ministries|5,217|37,453|47,001|-|89,671|
|Education|-|9,363|60,500|-|69,863|
|Donations|-|-|11,950|-|11,950|
|Support costs|2,609|18,727|69,323|11,541|102,200|
||-----------------|-----------------|-----------------|----------------|-----------------|
|**_Total_**|26,087|187,266|188,774|11,541|413,668|
||=========|=========|=========|=========|=========|
13
**OLIVET ASSEMBLY (A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS (continued)**
## **FOR THE PERIOD ENDED 31 AUGUST 2020**
--------------------------------------------------------------------------------------------------------------------------------------------------
## **3. EXPENDITURE (Continued)**
||Net income/(expenditure) is stated after charging:|||
|---|---|---|---|
||Independent Auditor’s fees (included in Governance costs)|4,800|4,700|
||Operating leases (Office premises)|237,528|72,332|
|||========|=======|
|**4.**|**STAFF COSTS**|||
|||**2020**|**2019**|
|||**£**|**£**|
||Wages and salaries|78,373|25,324|
||Social security costs|44|763|
||Pensions|269|-|
|||--------------|--------------|
|||78,686|26,087|
|||=======|=======|
The charity commenced employing staff from April 2018. No employee received remuneration over £60,000 (2019: none). The average monthly headcount was 4 (2019: 3). The key management staff is the Manager.
## **5. TRUSTEES**
None of the trustees (or any persons connected with them) received any reimbursement of expenses, remuneration or benefits from the charity during the period (2019: nil).
## **6.**
|**TANGIBLE FIXED ASSETS**|**Land &**|**Furniture &**||
|---|---|---|---|
||**Buildings**|**Equipment**|**Total**|
||**£**|**£**|**£**|
|**Valuation:**||||
|At 1 June 2019|2,576,059|-|2,576,059|
|Additions|-|1,498|1,498|
||-------------------|-------------------|--------------------|
|At 31 August 2020|2,576,059|1,498|2,577,557|
||-------------------|-------------------|-------------------|
|**Depreciation:**||||
|At 1 June 2019|12,881|-|12,881|
|Charge for the period|16,101|375|16,476|
||----------------|----------------|----------------|
|At 31 August 2020|28,982|375|29,357|
||----------------|----------------|----------------|
|**Net Book Value**||||
|At 31 August 2020|2,547,077|1,123|2,548,200|
||-----------------|-----------------|------------------|
|At 31 August 2019|2,563,178|-|2,563,178|
||**=========**|**=========**|**=========**|
Land and buildings represent costs incurred for the purchase of the church’s premises and facilities (Pilgrim Hall) which was completed in December 2018.
14
**OLIVET ASSEMBLY (A company limited by guarantee)**
**NOTES TO THE FINANCIAL STATEMENTS (continued)**
## **FOR THE PERIOD ENDED 31 AUGUST 2020**
--------------------------------------------------------------------------------------------------------------------------------------------------
## **7. INVESTMENT IN SUBSIDIARY UNDERTAKING**
On 5 May 2020, the charity acquired 100% of the share capital of Global London College Ltd (incorporated in England and Wales; Company number 07366665) for a total of £719,212. The company’s principal activities are providing English language courses and business and strategic management qualifications. All taxable profits generated by the company are expected to be paid to the charity under the Gift Aid Scheme.
A summary of the Profit & Loss Account and Balance Sheet from the audited financial statements for the 11month period to 31 August 2020 is given below:
||**2020**|
|---|---|
||**£**|
|Income|10,677|
|Expenditure|(127,908)|
||---------------|
|Net Profit/(loss)|(117,231)|
||========|
|Assets and liabilities:||
|Assets|11,615|
|Liabilities|(34,974)|
||---------------|
|Total net assets/(liabilities)|(23,359)|
||========|
|Represented by:||
|Share capital|10|
|Profit and loss account|(23,369)|
||---------------|
||(23,359)|
||========|
The loss in the period was due to the impact of Covid-19 on the recruitment of students. The company expects to generate profits in subsequent periods.
|**8.**|**DEBTORS**|**2020**|**2019**|
|---|---|---|---|
|||**£**|**£**|
||Other debtors|40,818|18,083|
||Amounts owed by subsidiary undertaking|11,621|-|
|||--------------|--------------|
|||52,439|18,083|
|||**========**|**========**|
|**9.**|**CREDITORS: amounts falling due**|**2020**|**2019**|
||**Within one year**|**£**|**£**|
||Bank loan (see Note 10)|84,898|74,974|
||Other creditors and accruals|19,914|57,708|
|||----------------|----------------|
|||104,812|132,682|
|||=========|========|
15
**OLIVET ASSEMBLY (A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS (continued)**
## **FOR THE PERIOD ENDED 31 AUGUST 2020**
--------------------------------------------------------------------------------------------------------------------------------------------------
|**10.**|**CREDITORS: amounts falling due**|**2020**|**2019**|
|---|---|---|---|
||**After more than one year**|**£**|**£**|
||Bank loan|1,109,306|1,142,947|
|||============|============|
A secured bank loan of £1,250,000 was taken in November 2018. The loan bears an interest rate of 2.49% above Bank of England base rates and is repayable in 20 years. The balance outstanding at 31 August 2020 was £1,194,204 (2019: 1,217,921).
## **11. ANALYSIS OF MOVEMENT IN FUNDS**
||**Balance**||||**Balance**|
|---|---|---|---|---|---|
||**1 June 2019**|**Income**|**Expenditure**|**Transfers**|**31 August**|
||||||**2020**|
||**£**|**£**||**£**|**£**|
|Restricted funds:||||||
|Pilgrim Hall Fund|750,377|-|(16,101)|-|734,276|
||----------------|----------------|----------------|----------------|----------------|
|**_Total Restricted Funds_**|750,377||(16,101)|-|734,276|
|Unrestricted funds:||||||
|General Fund|576,276|1,646,833|(768,805)|-|1,454,304|
||-------------------|-------------------|-----------------|----------------|-------------------|
|**Total Funds**|1,326,653|1,646,833|(784,906)|-|2,188,580|
||**==========**|**==========**|**=========**|**========**|**==========**|
Pilgrim Hall Fund represents amounts donated to the charity towards the purchase of a property – Pilgrim Hall. The depreciation charge for the period has been allocated to this fund.
|**2019 COMPARATIVES**|**Balance**||||**Balance**|
|---|---|---|---|---|---|
||**1 June 2018**|**Income**|**Expenditure**|**Transfers**|**31 May 2019**|
||**£**|**£**||**£**|**£**|
|Restricted funds:||||||
|Pilgrim Hall Fund|485,232|278,026|(12,881)|-|750,377|
|Olivet Academy Fund|25,457|-|(60,500)|35,043|-|
||----------------|----------------|----------------|----------------|----------------|
|**_Total Restricted Funds_**|510,689|278,026|(73,381)|35,043|750,377|
|Unrestricted funds:||||||
|General Fund|2,415|949,191|(340,287)|(35,043)|576,276|
||----------------|-------------------|-----------------|----------------|-------------------|
|**Total Funds**|513,104|1,227,217|(413,668)|-|1,326,653|
||**========**|**==========**|**=========**|**========**|**==========**|
16
**OLIVET ASSEMBLY (A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS (continued)**
## **FOR THE PERIOD ENDED 31 AUGUST 2020**
--------------------------------------------------------------------------------------------------------------------------------------------------
## **12. ALLOCATION OF NET ASSETS BETWEEN FUNDS**
||**Unrestricted**|**Restricted**|**2020**|**2019**|
|---|---|---|---|---|
||**£**|**£**|**£**|**£**|
|Tangible fixed assets|1,813,924|734,276|2,548,200|2,563,178|
|Investment in subsidiary|719,212||719,212|-|
|Current assets|135,286|-|135,286|39,104|
|Current liabilities|(104,812)|-|(104,812)|(132,682)|
|Long term liabilities|(1,109,306)|-|(1,109,306)|(1,142,947)|
||-------------------|-----------------|-------------------|-------------------|
||1,454,304|734,276|2,188,580|1,326,653|
||**==========**|**=========**|**==========**|**==========**|
|**2019 COMPARATIVES**|**Unrestricted**|**Restricted**|**2019**||
||**£**|**£**|**£**||
|Tangible fixed assets|1,812,801|750,377|2,563,178||
|Current assets|39,104|-|39,104||
|Current liabilities|(132,682)|-|(132,682)||
|Long term liabilities|(1,142,947)|-|(1,142,947)||
||----------------|----------------|----------------||
||576,276|750,377|1,326,653||
||**========**|**========**|**========**||
## **13. OPERATING LEASE COMMITMENTS**
At the period end, the charity had the following minimum future operating lease commitments:
||**2020**|**2019**|
|---|---|---|
||**£**|**£**|
|**Leases which expire:**|Premises|Premises|
|Within one year|127,102|72,332|
|Within two to five years|363,744|54,249|
|Over five years|363,744|-|
||----------------|----------------|
||854,590|126,581|
||**========**|**========**|
## **14. SHARE CAPITAL AND CONTROL**
The charity is a company limited by guarantee. In the event of the charity being wound up, the liability in respect of each member is limited to £10. The charity is controlled by the board of trustees.
## **15. RELATED PARTIES**
World Olivet Assembly (WOA) located in USA is a related charity and it supports activities of the UK charity by making donations to fund capital and some operational costs. The total amount donated in the period was £119,889 (2020: £278,026). In 2019, a one-off donation of £8,500 was made by this charity to WOA towards the development of the world headquarters (included in “Donations” in expenditure – see Note 3). There were no other transactions with WOA during the period.
17
**OLIVET ASSEMBLY (A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS (continued)**
## **FOR THE PERIOD ENDED 31 AUGUST 2020**
--------------------------------------------------------------------------------------------------------------------------------------------------
## **16. COMPARATIVE STATEMENT OF FINANCIAL ACTIVITIES (2019)**
|**INCOME AND EXPENDITURE**|**Unrestricted**|**Restricted**|**Total**|
|---|---|---|---|
||**funds**|**funds**|**2019**|
||**£**|**£**|**£**|
|**Income and endowments from:**||||
|Donations and legacies|949,191|278,026|1,227,217|
|Investment income|-|-|-|
||-----------------|-----------------|-----------------|
|**Total Income**|949,191|278,026|1,227,217|
||-----------------|-----------------|-----------------|
|**Expenditure on:**||||
|**Charitable activities**|340,287|73,381|413,668|
||------------------|------------------|------------------|
|**Total Expenditure**|340,287|73,381|413,668|
||--------------------|--------------------|--------------------|
|Net income|608,904|204,645|813,549|
|Transfers between funds|(35,043)|35,043|-|
||--------------------|--------------------|--------------------|
|**Net movement in funds**|573,861|239,688|813,549|
|Total funds brought forward|2,415|510,689|513,104|
||---------------------|---------------------|---------------------|
|**Total funds carried forward**|576,276|750,377|1,326,653|
||===========|===========|===========|
18