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← The Fellowship Of Independent Evangelical Churches

2023-08-31-accounts

Charity registration number 1168037 (England and Wales)

Charity registration number SC047080 (Scotland)

FELLOWSHIP OF INDEPENDENT EVANGELICAL CHURCHES ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023

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FELLOWSHIP OF INDEPENDENT EVANGELICAL CHURCHES

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees Ian Jones (Chair)
Greig Ferguson (Appointed 1 December 2023)
Jeremy Brooks (Appointed 1 December 2023)
Stephen Waud (Appointed 1 December 2023)
Ian MacMichael (Appointed 1 December 2022)
Mike Hitchings (Appointed 1 December 2022)
Peter Campbell
Colin Adams
John Russell
William James
Michael Kendall (Vice-Chair)
John Shaw (Appointed 17 January 2024)
Directors John Stevens National Director
Adrian Reynolds Head of National Ministry
Andy Hunter (acting) Head of National Ministry
Andy Hunter Scotland & North of England Director
Trevor Archer Director of London
Daniel Grimwade Director of Yorkshire
Gareth Lewis Director of South Wales
Mark Howson Director of Suffolk
Paul Mallard Director of West Midlands
Andy Paterson MIssion Director
Elinor Magowan & Rebecca Sloan Director for Women's Ministry
Jonathan Bond Director for Smaller Churches
Johnny Prime Director for Pastoral Support
Phil Topham Executive Director
Charity number (England and 1168037
Wales)
Charity number (Scotland) SC047080
Principal address 41 The Point
Market Harborough
Leicestershire
LE16 7QU
Auditor Caladine Limited
Chantry House
22 Upperton Road
Eastbourne
East Sussex
BN21 1BF
Bankers CAF Bank Ltd
25 Kings Hill
West Malling
Kent
ME19 4JQ

FELLOWSHIP OF INDEPENDENT EVANGELICAL CHURCHES

LEGAL AND ADMINISTRATIVE INFORMATION

Solicitors

Safeguarding advisors

Edward Connor Solicitors 10 The Point Market Harborough LE16 7QU Christian Safeguarding Services 6 Marshalsea Road London SE1 1HL

FELLOWSHIP OF INDEPENDENT EVANGELICAL CHURCHES

CONTENTS

Page
Trustees' report 1 - 6
Statement of trustees' responsibilities 7
Independent auditor's report 8 - 10
Statement of financial activities 11
Statement of financial position 12
Statement of cash flows 13
Notes to the financial statements 14 - 30

FELLOWSHIP OF INDEPENDENT EVANGELICAL CHURCHES

TRUSTEES' REPORT

FOR THE YEAR ENDED 31 AUGUST 2023

The trustees present their annual report and financial statements for the year ended 31 August 2023.

The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity's Constitution, the Charities Act 2011, the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006 (as amended) and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)" (effective 1 January 2019).

Objectives and activities

The objects of FIEC are to advance the evangelical Christian faith as expressed in the Doctrinal Basis of the Fellowship. These objects are furthered by:

The CIO charity objects are the same as the Legacy charity, with two clarifications. The ‘congregations of Christian believers’ are expressed in terms of ‘churches of Christian believers’. In addition, churches find their unity on the basis of the common adherence to the doctrinal basis ‘and the Ethos statements’.

Public benefit

The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake.

Achievements and performance

Significant activities and achievements against objectives

FIEC’s Trustees approved a Strategic Plan in June 2021, and it is that plan which is reviewed and revised to ensure the charity is meeting its strategic objectives.

Our work is shaped by our desire – encapsulated in the Strategic Plan – to help churches. We have evaluated what a healthy independent church looks like, and have sought to support independent churches in this task.

At the heart of this plan is the split of our ministries into two areas of work: national ministries – by which we mean content and resources to churches on a national level – overseen by Adrian Reynolds as Head of National Ministries. Then local ministries – by which we mean the relational work between churches and leaders, and also the Pastors’ Network – overseen in this period by Andy Hunter who did the role in an acting capacity between Easter 2022 and the end of the period (August 2023). A new Head of Local Ministries, Graham Beynon was employed during the period and began work on 1 September 2023.

National Director John Stevens focuses on national engagement on behalf of FIEC and its churches.

The staff team that offers administrative support to the ministries of FIEC and our member churches is overseen by Executive Director Phil Topham, who is also the conduit between the Senior Leadership Team of FIEC and the Trustees. During this period, FIEC appointed Hannah Hutchinson as Chief Operating Officer. She serves as deputy to the Executive Director and helps to manage the day-to-day running of the office team. This has enabled the Executive Director to spend more time engaging with churches to encourage membership of the charity.

FELLOWSHIP OF INDEPENDENT EVANGELICAL CHURCHES

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2023

The work of FIEC can be summarised as follows:

In 2022/23 the priorities included:

The period was the first full year that had not been directly impacted by the Covid-19 pandemic since 2019, and it meant that our ministries were able to function in the way we would expect. This meant delivering our National Leaders’ Conference for the first time since 2022, and also moving ahead with other ministry priorities that had been on hold.

We celebrated our Centenary year with a special service at Westminster Chapel in London, as well as being able to give away more than £1million from our Mission Fund to serve churches with projects core to their work and ministry. We also produced a prayer guide to enable member churches to pray for these different projects taking place around the country.

Here are some of the achievements during the period:

1.Delivering our first National Leaders’ Conference since 2019

We gathered for the first time since 2019, with almost 1000 church leaders represented in one place. We also had a new venue for our Conference – The Winter Gardens in Blackpool. The November 2022 Conference took the theme “Keeping the Lights On” and focused on the everyday ministry FIEC churches are involved in – which also coincided well with our 100th anniversary which was marked at the event.

2. Delivering 27 Local Conferences for leaders

The conferences during the period took the theme of our everyday ministry from the main Leaders’ Conference and considered “partnership”. A key way FIEC helps its churches is by encouraging them to connect with one another. This meant that the Local Conferences encouraged churches in different geographical areas to consider this partnership. Acting Head of Local Ministries Andy Hunter took responsibility for these conferences, aided by other members of the ministry team.

3. Celebrating our Centenary

FELLOWSHIP OF INDEPENDENT EVANGELICAL CHURCHES

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2023

4. Seeing new Churches join FIEC

23 Churches were accepted into membership of FIEC in the period. They have joined us from a range of backgrounds. There was also the recognition of three new church plants.

5. Delivering Conferences for Women in Ministry

Thrive and The Ministry Wives Retreat took place in May 2023. The former is aimed at women serving in pastoral ministry positions in churches. The latter is designed to support those married to men in ministry in FIEC churches. They equip women in ministry with Bible teaching, seminars and relational support.

6. Appointing Local Ministry Directors

Our Strategic Plan includes the vision to raise up Ministry Directors for different areas of the UK to serve our affiliated churches on the ground. During the period we appointed Local Directors for Yorkshire, Suffolk, The West Midlands and South Wales. These were a mix of full-time and part-time appointments. The Local Directors will serve FIEC by galvanising ministry and fostering good connections between churches in different localities.

Significant factors

Other developments and significant milestones during the period included:

Fundraising practices

Regulations require us to report each year on certain aspects of any fundraising by FIEC.

Financial review

Total income in all funds was £2,178k (£1,267k in 2022), made up of donations and grants from trusts. Most significant are the donations from churches as this is FIEC’s main source of fundraising. Affiliated church donations to unrestricted funds were £871K (£862K in 2022). Suggested donations are in line with the size of a church’s membership and in the period were increased by 7% as we struck a balance between the cost of living crisis and two years of 0% rises.

One of the reasons there has been an increase in income is owing to the first national leaders’ gathering since 2019. There is income for this national event which was not in these figures in 2021/22 owing to five regional gatherings held in November 2021 in place of one national event.

Income to the Training Fund stood at £104k (2022: £43k).

FELLOWSHIP OF INDEPENDENT EVANGELICAL CHURCHES

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2023

Income to the Mission Fund was £672k (2022: £14k). During the period we were able to make significant grants from this Fund owing to monies built up in prior years. These monies were given away to FIEC churches as outlined above in line with our Centenary celebrations. We continue to use the Mission Fund to provide funding to church plants recognised by FIEC to help pay for their governing documents to be set up to enable them to register with the Charity Commission.

Donations from individuals for the General Fund were £52k (£172k in 2022). We are grateful to all who contribute in this way. We also received legacies in the period totalling £162k.

Total expenditure was £2,582k (£1,330k in 2022). The increase from the previous year was owing to the “return to normality” for many of our ministries, and therefore expenses increased. There was also a National Conference for the first time since 2019 which meant that expenditure increased alongside income generated to cover this event.

Reserves policy

FIEC aims to maintain free reserves (Unrestricted Funds less unrestricted fixed assets, debtors and stock) at a level sufficient to cover three months’ general expenditure, in order to give FIEC time to respond to unexpected developments. At the end of the period Available Unrestricted Funds were around six months’ general expenditure. A deficit budget was planned for 2023/24 which will reduce the level of the reserves further, as FIEC wants to invest in ministries, not hoard funds.

Major risks

The Trust Board examines the major risks facing the charity on at least an annual basis, with ongoing monitoring provided by the Senior Leadership Team. Where relevant, the Trust Board ensures there are action plans in place to mitigate the greatest risks to reduce their likelihood and potential impact.

Policies are in place for:

Structure, governance and management

FIEC was constituted in November 1922 as an unincorporated organisation and became a Charitable Incorporated Organisation (CIO) with the same name and with similar charitable purposes in 2017. The CIO was registered with the Charity commission on 5th July 2016 with the name under reference 1168037.

By Resolution of the Trust Board on 26th September 2017 the name of the charity number 263354 was changed from The Fellowship of Independent Evangelical Churches to The FIEC (Legacy) Charity. This is retained as a ‘shell’ charity, with an amended Constitution, solely for the purpose of dealing with the transfer of any potential future legacies left to the ‘old’ charity, for the benefit of the CIO charity.

In Scotland, FIEC was registered with the Office of the Scottish Charity Regulator (OSCR) under reference SC040111. On 10th January 2017, OSCR registered the FIEC CIO under a new reference SC047080 and contemporaneously deleted the ‘old’ charity. This was done in consultation with OSCR and following their advice.

Until 31 August 2017, FIEC was an unincorporated association with a Constitution as its governing document. Both under the unincorporated organisation and the CIO Constitution (as corporate successor to the FIEC from 1 September 2017), a general meeting of FIEC is held each November. This meeting has full responsibility for the direction of FIEC. Each affiliated church is entitled to appoint delegates to the general meeting, where major policy questions are decided and thereafter remitted to the Trust Board for executive action.

FELLOWSHIP OF INDEPENDENT EVANGELICAL CHURCHES

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2023

The trustees of the charity are the twelve members of the Trust Board. Potential Trust Board members are nominated by affiliated churches with an election at the general meeting each November of church delegates. Elected members serve for a period of three years and are eligible for re-election. In the event of a vacancy arising the Trust Board may co-opt a replacement member to serve until the next general meeting. This option was exercised during the period

The Trust Board has considered the general guidance issued by the Charity Commission on public benefit and in particular, its supplementary guidance on the advancement of religion for the public benefit.

Affiliated churches are required to register with the Charity Commission where their income exceeds £100,000 per annum and / or where constituted as a Charitable Incorporated Organisation. Otherwise, churches are not currently able to make a new registration with the Charity Commission due to the Charities (Exception from Registration) Regulations 1996 which are currently set to continue to apply until 31st March 2031 through The Charities (Exception from Registration)(Amendment) Regulations 2014.

On accepting new churches into membership of FIEC, the Trust Board policy is for churches to have governing documents that are capable of being registered with the Charity Commission. If these are not currently in place, they are expected to work to rectify this within two years (24 months) of joining as a member church.

Members are elected at FIEC’s general meeting each November and start their period of service from 1st December following. Trust Board Members who served as trustees during the period and up to the date of approval of this Report were:

Ian Jones (Chair)
Greig Ferguson (Appointed 1 December 2023)
Jeremy Brooks (Appointed 1 December 2023)
Stephen Waud (Appointed 1 December 2023)
Ian MacMichael (Appointed 1 December 2022)
Mike Hitchings (Appointed 1 December 2022)
Peter Campbell
Colin Adams
John Russell
William James
Michael Kendall (Vice-Chair)
Julian Hardyman (Resigned 7 February 2023)
Timothy Diaper (Resigned 31 August 2023)
Mark Lawrence (Resigned 31 August 2023)
Gareth Lewis (Resigned 5 October 2022)
Paul Mallard (Resigned 5 October 2022)
John Shaw (Appointed 17 January 2024)

Recruitment and appointment of trustees

At the general meeting in November 2022, William James, Mark Lawrence and John Russell were elected for a further three-year term.

New Trust Board members are informed of the Charity Commission guidance concerning the responsibilities of trustees and given an introductory presentation on the role of trustees. The Trust Board keeps under review the most appropriate means of ensuring regular, ongoing training for Trust Board members, including making training a part of their termly gatherings.

None of the trustees has any beneficial interest in the company. All of the trustees are members of the company and guarantee to contribute £1 in the event of a winding up.

FELLOWSHIP OF INDEPENDENT EVANGELICAL CHURCHES

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2023

Organisational structure

The Trust Board is responsible for the governance and policy for FIEC. The implementation of the policy and the day to day management is delegated to the National Director, who is appointed by the Trust Board and approved by the general meeting. John Stevens has been in post as National Director since 2010. In addition to the FIEC National Director there are directors appointed by him with specific responsibilities. During this period the following Directors served:

Heads of National Ministry - Adrian Reynolds & Any Hunter (acting) Scotland & North of England Director - Andy Hunter Director for London - Trevor Archer Director for Yorkshire - Daniel Grimwade Director for South Wales - Gareth Lewis Director for Suffolk - Mark Howson Director for West Midlands - Paul Mallard Mission Director - Andy Paterson Director for Women's Ministry - Elinor Magowan & Rachel Sloan Director for Smaller Churches - Jonathan Bond Director for Pastoral Support - Johnny Prime Executive Director - Phil Topham

The Heads of National Ministry (Adrian Reynolds & Andy Hunter - acting) form the Senior Leadership Team along with the National Director (John Stevens) and a senior member of the staff team (Executive Director Phil Topham). The Senior Leadership Team is assisted in carrying out its responsibilities by other staff and a number of voluntary advisory teams which provide advice and expertise. The National Recognition Team is established by the Trust Board with the assistance of the National Director to advise the Trust Board on churches to be admitted as members of FIEC and men to be admitted to the FIEC Pastors’ Network.

The Senior Leadership Team meets weekly to discuss and implement policy and practical matters across the organisation. The other ministry staff meet in smaller groups to deliver ministry – the regional directors under the leadership of the Head of Local Ministries and the other ministers under the leadership of the Head of National Ministries.

The Trust Board are members of The Fellowship Property Trust (which is a separate charity and company, and which prepares its own accounts) and as such, they appoint trustees to the Board of The Fellowship Property Trust.

The trustees' report was approved by the Board of Trustees.

.............................. Ian Jones (Chair) Chair

Date: 20th May 2024

FELLOWSHIP OF INDEPENDENT EVANGELICAL CHURCHES

STATEMENT OF TRUSTEES' RESPONSIBILITIES

FOR THE YEAR ENDED 31 AUGUST 2023

The trustees 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).

The law applicable to charities in England and Wales and in Scotland requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources of the charity for that year.

In preparing these financial statements, the trustees are required to:

The trustees are responsible for keeping sufficient accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008, the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006 (as amended) and the provisions of the trust deed. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

FELLOWSHIP OF INDEPENDENT EVANGELICAL CHURCHES

INDEPENDENT AUDITOR'S REPORT

TO THE TRUSTEES OF FELLOWSHIP OF INDEPENDENT EVANGELICAL CHURCHES

Opinion

We have audited the financial statements of Fellowship of Independent Evangelical Churches (the ‘charity’) for the year ended 31 August 2023 which comprise the statement of financial activities, the statement of financial position, the statement of cash flows 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:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and the provisions available for small entities, in the circumstances set out in note 27 to the financial statements, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and 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 course of 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 this gives rise to a material misstatement in the financial statements themselves. 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.

FELLOWSHIP OF INDEPENDENT EVANGELICAL CHURCHES

INDEPENDENT AUDITOR'S REPORT (CONTINUED)

TO THE TRUSTEES OF FELLOWSHIP OF INDEPENDENT EVANGELICAL CHURCHES

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 and the Charities Accounts (Scotland) Regulations 2006 (as amended) require us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the statement of trustees' responsibilities, the trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the trustees are responsible for assessing the charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

We have been appointed as auditor under section 144 of the Charities Act 2011 and section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005 and report in accordance with the Acts and relevant regulations made or having effect thereunder.

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.

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

The 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:

We assessed the susceptibility of the charity's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

FELLOWSHIP OF INDEPENDENT EVANGELICAL CHURCHES

INDEPENDENT AUDITOR'S REPORT (CONTINUED)

TO THE TRUSTEES OF FELLOWSHIP OF INDEPENDENT EVANGELICAL CHURCHES

Audit response to risks identified

To address the risk of fraud through management bias and override of controls, we:

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

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.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https:// www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Other matters

Your attention is drawn to the fact that the charity has prepared financial statements in accordance with "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)" (as amended) in preference to the Accounting and Reporting by Charities: Statement of Recommended Practice issued on 1 April 2005 which is referred to in the extant regulations but has now been withdrawn.

This has been done in order for the financial statements to provide a true and fair view in accordance with current Generally Accepted Accounting Practice.

Caladine

Caladine Limited .........................21 May 2024 Chartered Certified Accountants Statutory Auditor Chantry House 22 Upperton Road Eastbourne East Sussex BN21 1BF

Caladine Limited is eligible for appointment as auditor of the charity by virtue of its eligibility for appointment as auditor of a company under section 1212 of the Companies Act 2006.

FELLOWSHIP OF INDEPENDENT EVANGELICAL CHURCHES

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT

FOR THE YEAR ENDED 31 AUGUST 2023

Unrestricted Restricted Restricted Total Unrestricted Restricted Total
funds funds funds funds
2023 2023 2023 2022 2022 2022
Notes £ £ £ £ £ £
Income from:
Donations and legacies 3 989,063 932,468 1,921,531 1,089,424 116,883 1,206,307
Charitable activities 4 234,407 - 234,407 55,827 - 55,827
Investments 5 20,740 105 20,845 2,750 165 2,915
Other income 6 915 - 915 1,654 - 1,654
Total income 1,245,125 932,573 2,177,698 1,149,655 117,048 1,266,703
Expenditure on:
Charitable activities 7 1,320,079 1,262,596 2,582,675 964,249 366,135 1,330,384
Net expenditure (74,954) (330,023) (404,977) 185,406 (249,087) (63,681)
Transfers between
funds 20 - - - 3,484 (3,484) -
Net movement in
funds (74,954) (330,023) (404,977) 188,890 (252,571) (63,681)
Reconciliation of funds:
Fund balances at 1 September
2022 1,539,517 1,045,004 2,584,521 1,350,627 1,297,575 2,648,202
Fund balances at 31 August
2023 1,464,563 714,981 2,179,544 1,539,517 1,045,004 2,584,521

The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.

FELLOWSHIP OF INDEPENDENT EVANGELICAL CHURCHES

STATEMENT OF FINANCIAL POSITION

AS AT 31 AUGUST 2023

2023 2023 2022 2022
Notes £ £ £ £
Fixed assets
Property, plant and equipment 13 882,275 891,503
Programme related investments 14 - 31,000
882,275 922,503
Current assets
Inventories 15 6,442 8,261
Trade and other receivables 16 65,963 72,959
Cash at bank and in hand 1,452,032 1,761,232
1,524,437 1,842,452
Current liabilities 17 227,168 180,434
Net current assets 1,297,269 1,662,018
Total assets less current liabilities 2,179,544 2,584,521
The funds of the charity
Restricted income funds 20 714,981 1,045,004
Unrestricted funds 21 1,464,563 1,539,517
2,179,544 2,584,521

The financial statements were approved by the trustees on .........................20 May 2024.

.............................. Ian Jones (Chair) Chair

FELLOWSHIP OF INDEPENDENT EVANGELICAL CHURCHES

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 AUGUST 2023

2023 2023 2022 2022
Notes £ £ £ £
Cash flows from operating activities
Cash (absorbed by)/generated from 25
operations (321,297) 76,384
Investing activities
Purchase of property, plant and equipment (8,748) (11,934)
Proceeds from disposal of property, plant
and equipment - 1,502
Investment income received 20,845 2,915
Net cash generated from/(used in)
investing activities 12,097 (7,517)
Net (decrease)/increase in cash and cash
equivalents (309,200) 68,867
Cash and cash equivalents at beginning of year 1,761,232 1,692,365
Cash and cash equivalents at end of year 1,452,032 1,761,232

FELLOWSHIP OF INDEPENDENT EVANGELICAL CHURCHES

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023

1 Accounting policies

Charity information

Fellowship of Independent Evangelical Churches is a CIO with cross border registration in England and Wales, and Scotland.

1.1 Accounting convention

The financial statements have been prepared in accordance with the charity's [governing document], the Charities Act 2011, the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006 (as amended), FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the Charities SORP "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)" (effective 1 January 2019). The charity is a Public Benefit Entity as defined by FRS 102.

The financial statements have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a true and fair view. This departure has involved following the Statement of Recommended Practice for charities applying FRS 102 rather than the version of the Statement of Recommended Practice which is referred to in the Regulations but which has since been withdrawn.

The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

1.2 Going concern

At the time of approving the financial statements, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3 Charitable funds

Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.

Restricted funds are subject to specific conditions by donors or grantors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.

1.4 Income

Income is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.

Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.

Legacies are recognised on receipt or otherwise if the charity has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.

FELLOWSHIP OF INDEPENDENT EVANGELICAL CHURCHES

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2023

1 Accounting policies (Continued)

1.5 Expenditure

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement, and the amount of the obligation can be measured reliably.

Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges are allocated on the portion of the asset’s use.

1.6 Property, plant and equipment

Property, plant and equipment are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following basis:

Freehold land and buildings 1% straight line Fixtures and fittings 20% straight line

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities.

1.7 Impairment of non-current assets

At each reporting end date, the charity reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).

1.8 Inventories

Inventories are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition. Items held for distribution at no or nominal consideration are measured the lower of replacement cost and cost.

Net realisable value is the estimated selling price less all estimated costs of completion and costs to be incurred in marketing, selling and distribution.

1.9 Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

FELLOWSHIP OF INDEPENDENT EVANGELICAL CHURCHES

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2023

1 Accounting policies (Continued)

1.10 Financial instruments

The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include trade and other receivables and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Basic financial liabilities

Basic financial liabilities, including trade and other payables and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade payables are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled.

1.11 Employee benefits

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.12 Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

FELLOWSHIP OF INDEPENDENT EVANGELICAL CHURCHES

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2023

2 Critical accounting estimates and judgements

In the application of the charity’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

3 Income from donations and legacies

Unrestricted Unrestricted Restricted Restricted Total Unrestricted Unrestricted Restricted Restricted Total
funds funds funds funds
2023 2023 2023 2022 2022 2022
£ £ £ £ £ £
Donations and gifts 937,428 43,631 981,059 1,064,616 116,883 1,181,499
Legacies receivable 33,071 128,709 161,780 24,808 - 24,808
Grants 18,564 760,128 778,692 - - -
989,063 932,468 1,921,531 1,089,424 116,883 1,206,307
Donations and gifts
Churches 856,058 15,411 871,469 807,842 53,864 861,706
Individuals 52,263 23,444 75,707 171,949 40,325 212,274
Preacher Honoraria 10,323 - 10,323 12,367 - 12,367
Gift Aid 3,930 4,776 8,706 2,949 4,859 7,808
Other 14,854 - 14,854 69,509 17,835 87,344
937,428 43,631 981,059 1,064,616 116,883 1,181,499

FELLOWSHIP OF INDEPENDENT EVANGELICAL CHURCHES

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 AUGUST 2023

4 Income from charitable activities

Unrestricted Unrestricted Unrestricted Unrestricted
funds funds
2023 2022
£ £
Courses and conferences
Course and conference fees 36,924 24,488
Leaders Conference 190,358 24,520
Publications and literature
Primer 1,105 1,894
Rental income
Rent of 41 The Point 6,020 4,925
234,407 55,827
Income from investments
Unrestricted Restricted Total Unrestricted Restricted Total
funds funds funds funds
2023 2023 2023 2022 2022 2022
£ £ £ £ £ £
Interest receivable 20,740 105 20,845 2,750 165 2,915

5 Income from investments

6 Other income

Unrestricted Unrestricted
funds funds
2023 2022
£ £
Other income 915 1,654

FELLOWSHIP OF INDEPENDENT EVANGELICAL CHURCHES

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2023

7 Expenditure on charitable activities

Church
Training and
Training and
Training and		 Outreach Other Develop- Total
support information evangelical ment
organisation
support
2023 2023 2023 2023 2023 2023
£ £ £ £ £ £
Direct costs
Staff costs 457,165 194,811 20,234 25,537 - 697,747
Depreciation and
impairment 25,000 - - - - 25,000
Establishment costs 30,498 12,996 1,350 1,703 - 46,547
Staff travel 35,033 14,929 1,551 1,957 - 53,470
Care and recognition of
churches 2,404 - - - - 2,404
Preaching and church visits 950 - - - - 950
Leaders Conference 189,408 - - - - 189,408
Theological advice 5,516 - - - - 5,516
Women's ministry 3,451 - - - - 3,451
London team 5,031 - - - - 5,031
Pastors' network 11,177 - - - - 11,177
Together magazine - 17,574 - - - 17,574
Primer - 1,870 - - - 1,870
Media and publicity - 12,981 - - - 12,981
Hub Conference - 17,579 - - - 17,579
Other conferences - 18,539 - - - 18,539
Mission information and
support - - 696 - - 696
Representation of other
bodies - - - 62 - 62
Support of Affinity - - - 16,938 - 16,938
Development - - - - 15,513 15,513
Mission projects and teams - - 408 - - 408
Youth and childrens work 1,747 - - - - 1,747
767,380 291,279 24,239 46,197 15,513 1,144,608
Grant funding of activities
(see note 8) 29,250 161,400 1,029,540 - - 1,220,190
Share of support and governance costs (see note 9)
Support 131,183 55,137 5,726 7,229 - 199,275
Governance 11,071 5,917 995 619 - 18,602
938,884 513,733 1,060,500 54,045 15,513 2,582,675
Analysis by fund
Unrestricted funds 882,841 352,333 29,351 54,045 1,509 1,320,079
Restricted funds 56,043 161,400 1,031,149 - 14,004 1,262,596
938,884 513,733 1,060,500 54,045 15,513 2,582,675

FELLOWSHIP OF INDEPENDENT EVANGELICAL CHURCHES

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 AUGUST 2023

7 Expenditure on charitable activities (Continued) Expenditure on charitable activities (Continued) Expenditure on charitable activities (Continued)
Previous year: Church
Training and		 Outreach Other Develop- Total
support information evangelical ment
organisation
support
2022 2022 2022 2022 2022 2022
£ £ £ £ £ £
Direct costs
Staff costs 403,087 175,848 35,260 23,398 - 637,593
Establishment costs 16,653 7,265 1,457 967 - 26,342
Staff travel 26,092 11,383 2,282 1,515 - 41,272
Care and recognition of
churches 572 - - - - 572
Preaching and church visits 1,392 - - - - 1,392
Leaders Conference 35,395 - - - - 35,395
Theological advice 1,554 - - - - 1,554
Women's ministry 2,332 - - - - 2,332
London team 605 - - - - 605
Pastors' network 9,501 - - - - 9,501
Together magazine - 21,688 - - - 21,688
Primer - 2,527 - - - 2,527
Media and publicity - 17,042 - - - 17,042
Hub Conference - 13,779 - - - 13,779
Other conferences - 13,227 - - - 13,227
Mission information and
support - - 11,110 - - 11,110
Representation of other
bodies - - - 80 - 80
Support of Affinity - - - 15,058 - 15,058
Development - - - - 12,444 12,444
497,183 262,759 50,109 41,018 12,444 863,513
Grant funding of activities
(see note 8) - 340,280 - - - 340,280
Share of support and governance costs (see note 9)
Support 73,424 31,249 6,772 4,158 - 115,603
Governance 6,946 3,030 608 404 - 10,988
577,553 637,318 57,489 45,580 12,444 1,330,384
Analysis by fund
Unrestricted funds 575,760 297,037 45,872 45,580 - 964,249
Restricted funds 1,793 340,281 11,617 - 12,444 366,135
577,553 637,318 57,489 45,580 12,444 1,330,384

FELLOWSHIP OF INDEPENDENT EVANGELICAL CHURCHES

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2023

8 Grants payable

Church
Training and
Outreach		 Total Training and
support information information
2023 2023 2023 2023 2022
£ £ £ £ £
Grants to institutions:
Grants to FIEC churches 29,000 161,400 1,029,540 1,219,940 340,280
Grants to individuals 250 - - 250 -
29,250 161,400 1,029,540 1,220,190 340,280

9 Support costs allocated to activities

Support costs allocated to activities
2023 2022
£ £
Depreciation 17,976 20,419
Consumables 22,531 19,351
Information technology 133,429 64,168
Other costs 25,844 11,665
Governance costs 18,097 10,988
217,877 126,591
Analysed between:
Church support 142,254 80,370
Training and information 61,054 34,279
Outreach 6,721 7,380
Other evangelical organisation support 7,848 4,562
217,877 126,591
2023 2022
Governance costs comprise: £ £
Audit fees 7,560 3,463
Accountancy 3,000 1,620
Trust board member expenses 2,160 2,419
Trust board meeting expenses 3,932 3,486
Trust board other expenses 1,445 -
18,097 10,988

FELLOWSHIP OF INDEPENDENT EVANGELICAL CHURCHES

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2023

10 Trustees

None of the trustees (or any persons connected with them) received any remuneration during the year.

12 of them were reimbursed (or had their expenses met by the charity) a total of £3,932 meeting expenses (2022 - 10 were reimbursed £3,486).

14 of them were reimbursed (or had their expenses met by the charity) a total of £2,160 other member expenses (2022 - 13 were reimbursed £2,419).

11 Employees

The average monthly number of employees during the year was:

The average monthly number of employees during the year was:
2023 2022
Number Number
20 19
Employment costs 2023 2022
£ £
Wages and salaries 578,508 524,849
Social security costs 54,162 54,617
Other pension costs 65,077 58,127
697,747 637,593
The number of employees whose annual remuneration was more than £60,000
is as follows:
2023 2022
Number Number
£60,001 to £70,000 1 1
Remuneration of key management personnel
The remuneration of key management personnel is as follows.
2023 2022
£ £
Aggregate compensation 318,270 231,678

12 Taxation

The charity is exempt from taxation on its activities because all its income is applied for charitable purposes.

FELLOWSHIP OF INDEPENDENT EVANGELICAL CHURCHES

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 AUGUST 2023

13 Property, plant and equipment

13 Property, plant and equipment
Freehold land Fixtures and Total
and buildings fittings
£ £ £
Cost
At 1 September 2022 903,904 66,956 970,860
Additions - 8,748 8,748
At 31 August 2023 903,904 75,704 979,608
Depreciation and impairment
At 1 September 2022 29,776 49,581 79,357
Depreciation charged in the year 7,444 10,532 17,976
At 31 August 2023 37,220 60,113 97,333
Carrying amount
At 31 August 2023 866,684 15,591 882,275
At 31 August 2022 874,128 17,375 891,503
14 Programme related investments
£
At 1 September 2022 31,000
Impairments (25,000)
Recovered amount (6,000)
At 31 August 2023 -
15 Inventories
2023 2022
£ £
Finished goods and goods for resale 6,442 8,261
16 Trade and other receivables
2023 2022
Amounts falling due within one year: £ £
Trade receivables 8,282 -
Other receivables - 1,290
Prepayments and accrued income 57,681 71,669
65,963 72,959

FELLOWSHIP OF INDEPENDENT EVANGELICAL CHURCHES

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2023

17 Current liabilities
2023 2022
Notes £ £
Other taxation and social security 25,419 11,698
Deferred income 18 153,800 163,542
Other payables 31,500 -
Accruals 16,449 5,194
227,168 180,434
18 Deferred income
2023 2022
£ £
Other deferred income 153,800 163,542
Deferred income is included in the financial statements as follows:
2023 2022
£ £
Deferred income is included within:
Current liabilities 153,800 163,542
Movements in the year:
Deferred income at 1 September 2022 163,542 11,580
Released from previous periods (163,542) (11,580)
Resources deferred in the year 153,800 163,542
Deferred income at 31 August 2023 153,800 163,542

Deferred income is comprised of monies received in advanced for the FIEC Leadership Conference held in November 2023.

19 Retirement benefit schemes

Defined contribution schemes

The charity operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the charity in an independently administered fund.

The charge to profit or loss in respect of defined contribution schemes was £65,077 (2022 - £58,127).

FELLOWSHIP OF INDEPENDENT EVANGELICAL CHURCHES

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2023

20 Restricted funds

The restricted funds of the charity comprise the unexpended balances of donations and grants held on trust subject to specific conditions by donors as to how they may be used.

At 1 Incoming
Resources
Resources		 **Transfers ** At 31 August At 31 August
September
resources		 expended 2023
2022
£ £ £ £ £
Benevolent fund 2,056 - (250) - 1,806
Mission fund 500,973 671,977 (1,030,235) - 142,715
Dalling memorial fund 24,701 - - - 24,701
Philip Henman trust fund 121,205 - - - 121,205
Scottish legacy fund 23,373 - - - 23,373
Church hardship fund 42,500 - (29,000) (13,500) -
Development fund 9,136 6,272 (14,003) (1,405) -
FIEC loan fund 99,630 105 (25,000) - 74,735
Training fund 86,385 104,219 (161,400) - 29,204
Connect for growth 6,233 - (408) - 5,825
Office property fund 128,812 - (2,300) - 126,512
London Directors fund - 150,000 - - 150,000
Bursary fund - - - 14,905 14,905
1,045,004 932,573 (1,262,596) - 714,981
Previous year: At 1 Incoming
Resources		 **Transfers ** At 31 August
September
resources		 expended 2022
2021
£ £ £ £ £
Benevolent fund 2,056 - - - 2,056
Mission fund 498,544 13,540 (11,111) - 500,973
Dalling memorial fund 24,701 - - - 24,701
Philip Henman trust fund 121,205 - - - 121,205
Scottish legacy fund 23,373 - - - 23,373
Church hardship fund - 42,500 - - 42,500
Development fund 7,064 18,000 (12,444) (3,484) 9,136
FIEC loan fund 99,465 165 - - 99,630
Training fund 383,822 42,843 (340,280) - 86,385
Connect for frowth 6,233 - - - 6,233
Office property fund 131,112 - (2,300) - 128,812
1,297,575 117,048 (366,135) (3,484) 1,045,004

Benevolent fund - used to make gifts to ministers, partners, and affiliated church members, who are considered to be in need of financial assistance.

Mission fund - to provide support for church planting initiatives and other outreach initiatives within the UK.

Dalling memorial fund - to provide support to accredited ministers and their families in time of illness.

FELLOWSHIP OF INDEPENDENT EVANGELICAL CHURCHES

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2023

20 Restricted funds (Continued)

Philip Henman trust fund - supporting the work and outreach of the Fellowship.

Scottish legacy fund - to provide support for the work of the Fellowship in Scotland.

Church Hardship Fund – to provide support for churches which are struggling financially. The balance on the Church Hardship fund was transferred to the new Bursary fund in June 2023 when all the allocated grants had been sent out.

Development fund - meeting costs for specific projects made known by FIEC to develop the fundraising and administrative support functions of FIEC.

FIEC loan fund - this fund was previously used for making loans available to church plants and building projects to advance gospel work. The fund has now been converted (with Charity Commission approval) into a grant fund within the Mission fund so there will be no further loan applications accepted.

Training fund - to provide financial support to men and women from within the FIEC family of churches to assist in their formal training for gospel ministries. The Fund also provides help to FIEC Churches in establishing ministry posts as well as evangelism and church planting initiatives involving training appointments.

Connect for growth - to provide support for our relationship with the Mississippi Baptist Convention in the United States which sees church members from both sides of the Atlantic visit each other's churches to provide support with ministry and mission.

Office property fund - established with money given specifically for the purchase of the Fellowship's office and through transfers from other funds which were restricted as to their use for property purchase.

London Directors fund - Funds from a closed church to be used within London and the surrounding area which have been ringfenced by the Trustees to fund the London Director's salary for up to a period of three years

Bursary fund - to provide help for churches leaders to attend FIEC conferences.

21 Unrestricted funds

The unrestricted funds of the charity comprise the unexpended balances of donations and grants which are not subject to specific conditions by donors and grantors as to how they may be used. These include designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes.

At 1
Incoming
Resources		 **Transfers ** At 31 August At 31 August
September
resources		 expended 2023
2022
£ £ £ £ £
Local Directors fund - - - 119,618 119,618
Capital fund 39,994 - - - 39,994
General funds 1,499,523 1,245,125 (1,320,079) (119,618) 1,304,951
1,539,517 1,245,125 (1,320,079) - 1,464,563

FELLOWSHIP OF INDEPENDENT EVANGELICAL CHURCHES

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 AUGUST 2023

21 Unrestricted funds (Continued)

Previous year: At 1
Incoming
Resources		 **Transfers ** At 31 August
September
resources		 expended 2022
2021
£ £ £ £ £
Capital fund 39,994 - - - 39,994
General funds 1,310,633 1,149,655 (964,249) 3,484 1,499,523
1,350,627 1,149,655 (964,249) 3,484 1,539,517

Local Directors fund - Funds ringfenced by the Trustees to fund the Local Directors salary costs and expenses, less associated income, for three years.

Capital fund - Funds ringfenced by the Trustees to fund replacement of Capital equipment.

22 Analysis of net assets between funds

Unrestricted Unrestricted Restricted Restricted Total
funds funds
2023 2023 2023
£ £ £
Fund balances at 31 August 2023 are represented by:
Property, plant and equipment 755,763 126,512 882,275
Current assets/(liabilities) 708,800 588,469 1,297,269
1,464,563 714,981 2,179,544
Unrestricted Restricted Total
funds funds
2022 2022 2022
£ £ £
Fund balances at 31 August 2022 are represented by:
Property, plant and equipment 762,691 128,812 891,503
Programme related assets - 31,000 31,000
Current assets/(liabilities) 776,826 885,192 1,662,018
1,539,517 1,045,004 2,584,521

FELLOWSHIP OF INDEPENDENT EVANGELICAL CHURCHES

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2023

23 Operating lease commitments

Lessee

At the reporting end date the charity had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

2023 2022
£ £
Within one year 2,008 -
Between two and five years 7,470 -
9,478 -

FELLOWSHIP OF INDEPENDENT EVANGELICAL CHURCHES

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2023

24 Related party transactions

Transactions with related parties

During the year the charity entered into the following transactions with related parties:

The trustees /directors of The Fellowship Property Trust are appointed by members of the charity. During the year ended 31 August 2023 FIEC was recharged various expenses totaling £nil (2022: £1,300). In addition, the FIEC charged rent to the Trust of £4,000 (2022 - £4,000) and various expenses (including staff salaries) of £24,179 (2022: £31,409).

The Fellowship Property Trust held properties in Trust for FIEC member churches. During the year two of these properties were sold. The proceeds of the sale were given to FIEC in the form of a grant totaling £757,053 (2022: nil)

Members of Edward Connor Solicitors (ECS) are Trustees of FIEC from time to time. During the year ended 31 August 2023 the the charity recharged various expenses (including staff salaries) of £15,593 (2022: £12,278). In addition, FIEC received legal advice from ECS and incurred other various costs of £11,828 (2022: £11,021)

25 Cash generated from operations 2023 2022
£ £
Deficit for the year (404,977) (63,681)
Adjustments for:
Investment income recognised in statement of financial activities (20,845) (2,915)
Depreciation and impairment of fixed assets 42,976 20,419
Movements in working capital:
(Increase)/decrease in programme related assets 6,000 6,000
Decrease in inventories 1,819 2,302
Decrease/(increase) in trade and other receivables 6,996 (36,554)
Increase/(decrease) in trade and other payables 56,476 (1,149)
(Decrease)/increase in deferred income (9,742) 151,962
Cash (absorbed by)/generated from operations (321,297) 76,384

26 Analysis of changes in net funds

The charity had no material debt during the year.

FELLOWSHIP OF INDEPENDENT EVANGELICAL CHURCHES

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2023

27 Non-audit services provided by auditor

In common with many charities of our size and nature we use our auditor to assist with the preparation of the financial statements.