Charity registration number: 1171159
222 Ministries International
Annual Report and Financial Statements for the Year Ended 31 December 2020
222 Ministries International
Contents
| Contents | |
|---|---|
| Reference and Administrative Details | 1 |
| Trustees' Report | 2 to 5 |
| Statement of Trustees' Responsibilities | 6 |
| Independent Examiner's Report | 7 |
| Statement of Financial Activities | 8 |
| Balance Sheet | 9 |
| Notes to the Financial Statements | 10 to 16 |
222 Ministries International
Reference and Administrative Details
Trustees
Reverend Lazarus Yeghnazar (Chairman) Dr David Lister Mrs Jane Lister Mr Edgar Rich Mr Michael Thomas Mr Martin Wade Reverend Maggie Yeghnazar
Principal Office
4 Castle Road Camberley Surrey GU15 2DS
Charity Registration Number
1171159
Independent Examiner
Kolade Andrew Alli ACMA KARE Financial Management Consultants Ltd 10 Gatcombe Gardens West End, Hampshire SO18 3NA
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222 Ministries International
Trustees' Report
The Trustees present the annual report together with the financial statements of the charity for the year ended 31 December 2020.
Objectives and activities
The Trustees have pleasure in presenting their report and the financial statements for the year ended 31st December 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 the Republic of Ireland (FRS 102) (effective 1 January 2015).
Structure, Governance and Management
Constitution and Objectives
The Charity is constituted under a CIO Foundation Constitution dated 17th January 2017 and is a Charitable Incorporated Organisation (the Charity) registered in England and Wales, No. 1171159. The objects of the Charity are:
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To advance the Christian faith for the benefit of all people in accordance with the
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• statement of beliefs in such parts of the world as the Trustees consider appropriate;
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To provide charitable support and relief to people in such parts of the world as the Trustees consider appropriate, and;
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To further other such charitable purposes as the Trustees from time to time consider appropriate.
Organisation
The appointment of Trustees is governed by the Constitution. Existing Trustees are authorised to appoint new Trustees, and to fill vacancies arising through resignation, or death, of one of their number. We continue our search for new Trustees to strengthen the board. Trustees meet regularly to manage the activities of the Charity. L.Yeghnazar, together with the Projects Director, are primarily responsible for implementing the decisions of the Trustees.
Investment Powers
The Constitution authorises the Trustees to make, and hold, investments using the general funds of the Charity. No such investments are presently held.
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222 Ministries International
Trustees' Report
Activities
The Charity operates largely in the Middle East, via partners, and among Christians from these areas who live in other parts of the world. Partner organisations are already established in the Middle East, as well as elsewhere in Europe.
In addition, other ministries operating as part of the 222 family include: "Stichting 222 Ministry" in the Netherlands; "Mission 222" in Sweden; 222 Ministries USA, registered as a 501 (c) 3 organisation, and; ‘222 Germany’ in Germany. A ‘Dernek’, a charitable organisation, has also been established in Turkey. Each of these partner organisations operates under the legal requirements of their respective parent country. The Charity in England and Wales has one employee and relies significantly on the voluntary effort and commitment of individual trustees and other volunteers to carry out the work.
Achievements and performance
Due to Covid-19 pandemic restrictions many regular activities were adapted or expanded and new opportunities created. Through 222’s activities in 2020 we engaged several thousand people who have responded to make a Christian commitment and we are working hard to help them grow in the Christian faith.
These are some of the projects the charity was involved with in 2020:
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Regular training events and conferences for ministry leaders normally held in Europe and other parts of the world were replaced by interactive group online training .
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The interactive on line Persian Community Church (PCC) meetings continued to develop. With pandemic restrictions limiting personal meeting opportunities PCC became a vital lifeline for fellowship and teaching. Meeting frequency was increased from monthly to weekly. On line attendance expanded from 2,500 monthly to about 5,000 weekly.
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As part of the PCC package we began development of its ‘Meeting Tent’ initiative. This is an online capability that allows Farsi-speaking visitors to request prayer. By the end of 2020 the facility was accessible six hours a day for six days a week. Since we started in early August 2020 more than 10,000 visitors had come to the site.
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The 222 Porpasokh (Plenty of Answers) online Farsi resource continues to expand and by the year end provided more than 3,900 answers in its library of significant questions of faith.
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In partnership with Biblica we started work on updating and error checking the Farsi Living Bible. By the end of 2020 most of the work had been completed and the project remained well on target for completion in 2021.
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Continuing support was provided to families who had fled their homelands because of persecution for their religious beliefs. The annual Christmas Joy children’s programme was amended so that bespoke packs containing good shoes, warm clothing, sweets and a toy were distributed to 700 refugee children mainly in Turkey.
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Through 222’s Warm Homes project we provided assistance to vulnernable families and individuals who were unable to afford the cost to heat their homes. Temperatures in winter on the Anatolian plateau in Turkey can drop below minus 25 degrees C and many have to make a choice between buying food or paying for their heating.
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Iranian Nowruz New Year celebrations in 2020 were Covid adapted by 222 churches, which reached out with food for families in need amongst refugee communities in cities in Turkey.
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In Turkey we rented properties to enable churches to meet, for as long as it remained appropriate during the pandemic. We also rented facilities to provide nursery and childcare day nurseries to help meet the needs of Farsi-speaking children for education as well as to release refugee parents to earn money.
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222 Ministries International
Trustees' Report
Financial review
In a year dominated by Covid- 19 pandemic operating restrictions we thank God that our financial position strengthened. We reaped a harvest following significant work in 2019 with donations increasing by £263,500 to £465,074. We are grateful for this generous financial support from individuals, churches, foundations and businesses
We contributed funds to support and sustain many 222 international activities. Restricted Funds expenditure of £257,950 included significant support for Bible translation, ministry in Turkey, and humanitarian ministry. Yearend Restricted Funds cash amounted to £210,800 which will enable us to continue with Bible translation, church planting, and ministry and humanitarian work in Turkey and Europe. Following an operational change all Publications ministry assets were transferred to Stichting 222 Ministry in the Netherlands who will continue this vital work.
General Funds were greatly strengthened by a surplus of £31,900 for the year. Due to the pandemic some costs were lower than budget, particularly for overseas travel. There were also further cost benefits arising from the efficiency savings programme begun in 2019.
General Fund year end cash of £55,020 exceeds our minimum reserves level by £30,000. For decades the chairman and his wife have generously provided free office accommodation but in 2021 following their planned move we will need to rent office space. With the strengthened General Funds financial base we are in a good position to meet this new commitment together with other financial challenges which might arise from the continuing pandemic in 2021.
In determining the programmes, the Trustees have regard for the Charity Commission’s general guidance on public benefit, including those aspects relating to the relief of poverty. The Trustees ensure that the Charity’s programs are in line with its charitable objects and aims.
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222 Ministries International
Trustees' Report
Stated Reserves Policy
Trustees regularly review the appropriate reserves. Reserves are required because the Charity has no endowment funding and is entirely dependent for income on donor funding from year to year, which is inevitably subject to fluctuation.
Trustees consider a reserves policy of £25,000 is appropriate, representing about four months forecast unrestricted operating costs. At the year-end unrestricted funds were £55,026, an excess of £30,026 over on the reserves policy. The situation will continue to be monitored in 2021.
Risk Management
The Trustees have established policies and procedures to enable them to assess the major risks faced by the Charity and to take mitigating action where appropriate. These policies are reviewed annually to ensure that they remain appropriate to the Charity's needs and that they are aligned to the Charity's overall governance framework.
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222 Ministries International
Statement of Trustees' Responsibilities
The trustees are responsible for preparing the trustees' report and the financial statements in accordance with the United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) and applicable law and regulations.
The law applicable to charities 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 period. In preparing these financial statements, the trustees are required to:
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select suitable accounting policies and then apply them consistently;
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observe the methods and principles in the Charities SORP;
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make judgements and estimates that are reasonable and prudent;
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state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
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prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business.
The trustees are responsible for keeping proper 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 applicable Charities (Accounts and Reports) Regulations, and the provisions of the constitution. The trustees 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.
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222 Ministries International
Independent Examiner's Report to the trustees of 222 Ministries International
I report to the charity trustees on my examination of the accounts of the charity for the year ended 31 December 2020 which are set out on pages 8 to 16.
Respective responsibilities of trustees and examiner
As the charity’s trustees of 222 Ministries International you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 (‘the Act’).
I report in respect of my examination of the 222 Ministries International's accounts carried out under section 145 of the 2011 Act and in carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the Act.
Independent examiner’s statement
Since 222 Ministries International's gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a member of the Chartered Institute of Management Accountants UK , which is one of the listed bodies.
I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:
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accounting records were not kept in respect of 222 Ministries International as required by section 130 of the Act; or
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the accounts do not accord with those records; or
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the accounts do not comply with the accounting requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a ‘true and fair view' which is not a matter considered as part of an independent examination.
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.
...................................... Kolade Andrew Alli ACMA
KARE Financial Management Consultants Ltd 10 Gatcombe Gardens West End, Hampshire SO18 3NA
- 6[th] April 2021
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222 Ministries International
Statement of Financial Activities for the Year Ended 31 December 2020
| Statement of Financial Activities for the Year Ended 31 December 2020 |
Statement of Financial Activities for the Year Ended 31 December 2020 |
|---|---|
| Unrestricted Restricted Total 2020 Total 2019 |
|
| Note £ £ £ £ |
|
| Income and Endowments from: | |
| Charitable activities | 94,020 371,054 465,074 201,574 |
| Expenditure on: | |
| Charitable activities | (61,531) (196,419) (257,950) (232,074) |
| Total expenditure | |
| (61,531) (196,419) (257,950) (232,074) |
|
| Net | |
| income/(expenditure) | 32,489 174,635 207,124 (30,500) |
| Gross transfers between | |
| funds | (581) (23,207) (23,788) - |
| Net movement in funds | |
| 31,908 151,428 183,336 (30,500) |
|
| Reconciliation of funds | |
| Total funds brought | |
| forward | 23,118 59,372 82,490 112,990 |
| Total funds carried | |
| forward 8 |
55,026 210,800 265,826 82,490 |
All of the charity's activities derive from continuing operations during the above two periods.
The funds breakdown for 2019 is shown in note 8.
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222 Ministries International
(Registration number: 1171159) Balance Sheet as at 31 December 2020
| (Registration number: 1171159) Balance Sheet as at 31 December 2020 |
(Registration number: 1171159) Balance Sheet as at 31 December 2020 |
|---|---|
| 2020 2019 |
|
| Note £ £ |
|
| Current assets | |
| Stocks 6 |
- 14,418 |
| Cash at bank and in hand 7 |
265,826 68,072 |
| 265,826 82,490 |
|
| Funds of the charity: | |
| Restricted income funds | |
| Restricted funds | 210,800 54,737 |
| Unrestricted income funds | |
| Unrestricted funds | 55,026 27,753 |
| Total funds 8 |
|
| 265,826 82,490 |
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222 Ministries International
Notes to the Financial Statements for the Year Ended 31
December 2020
1 Accounting policies
Statement of compliance
The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2015) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Charities Act 2011.
Basis of preparation
222 Ministries International meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy notes.
Going concern
The trustees consider that there are no material uncertainties about the charity's ability to continue as a going concern.
Expenditure
All expenditure is recognised once there is a legal or constructive obligation to that expenditure, it is probable settlement is required and the amount can be measured reliably. All costs are allocated to the applicable expenditure heading that aggregate similar costs to that category. Where costs cannot be directly attributed to particular headings they have been allocated on a basis consistent with the use of resources, with central staff costs allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use. Other support costs are allocated based on the spread of staff costs.
Charitable activities
Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them.
Taxation
The charity is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the charity is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.
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222 Ministries International
Notes to the Financial Statements for the Year Ended 31 December 2020
Stock
Stock is valued at the lower of cost and estimated selling price less costs to complete and sell, after due regard for obsolete and slow moving stocks. Cost is determined using the first-in, first-out (FIFO).
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.
Fund structure
Unrestricted income funds are general funds that are available for use at the trustees's discretion in furtherance of the objectives of the charity.
Restricted income funds are those donated for use in a particular area or for specific purposes, the use of which is restricted to that area or purpose.
2 Income from charitable activities
Unrestricted
| Total | Total | |||
|---|---|---|---|---|
| General | Restricted | 2020 | 2019 | |
| £ | £ | £ | £ | |
| Income from charitable activities | ||||
| Gift aid | 8,513 - |
8,513 6,842 |
||
| Offerings & Donations | 84,978 - |
84,978 68,016 |
||
| Income from trade | 179 - |
179 3,718 |
||
| Miscellaneous income | 350 - |
350 230 |
||
| Gift aid | - 9,078 9,078 7,759 |
|||
| Offerings & Donations | - 359,269 359,269 109,550 |
|||
| Income from trade | - 2,705 2,705 5,282 |
|||
| Miscellaneous income | - 2 2 177 |
|||
| 94,020 371,054 465,074 201,574 |
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222 Ministries International
Notes to the Financial Statements for the Year Ended 31 December 2020
3 Expenditure on charitable activities
| Unrestricted | Unrestricted | ||||
|---|---|---|---|---|---|
| Total | Total | ||||
| General | Restricted | 2020 | 2019 | ||
| £ | £ | £ | £ | ||
| Expenditure on charitable | activities | ||||
| Bible translation costs | - | (85,303) | (85,303) | - | |
| Miscellaneous Ministry | - | (400) | (400) | (3,096) | |
| Wages and salaries | - | - | - | (1,416) | |
| Bank Charges | - | (667) | (667) | (394) | |
| Buildings | - | (21,064) | (21,064) | (9,839) | |
| Church Planting | - | - | - | (28,500) | |
| Internet & Social Media | |||||
| Ministry | - | (1,074) | (1,074) | (982) | |
| Humanitarian Ministry | - | (34,140) | (34,140) | (36,282) | |
| Training & Conferences | |||||
| Ministry | - | (3,508) | (3,508) | (26,631) | |
| Turkey Ministry | - | (40,739) | (40,739) | (55,949) | |
| Evangelism Ministry | - | (232) | (232) | - | |
| Development & Fund Raising | |||||
| Expenses | - | (1,505) | (1,505) | - | |
| Operations Travel Expenses | - | - | - | (28) | |
| Office Equipment, IT and | |||||
| Software | - | (1,447) | (1,447) | - | |
| Office Materials, Stationery, | |||||
| Printing & Postage | - | (294) | (294) | (111) | |
| Telephone, Broadband and | |||||
| Data Costs | - | (768) | (768) | (58) | |
| Publications | - | (1,318) | (1,318) | 10,793 | |
| Medical Ministry | - | (4,007) | (4,007) | (2,000) | |
| Foreign currency | |||||
| (gains)/losses | - | 47 | 47 | (107) | |
| Wages and salaries | (35,861) | - | (35,861) | (34,891) | |
| Bank Charges | (106) | - | (106) | (206) | |
| Buildings | - | - | - | (711) | |
| Insurance | (256) | - | (256) | (256) | |
| Internet & Social Media | |||||
| Ministry | (4,315) | - | (4,315) | (9,763) | |
| Development & Fund Raising | |||||
| Expenses | (4,272) | - | (4,272) | (5,789) |
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222 Ministries International
Notes to the Financial Statements for the Year Ended 31 December 2020
| December 2020 | |
|---|---|
| Unrestricted | |
| Total Total |
|
| General Restricted 2020 2019 |
|
| £ £ £ £ |
|
| Operations Travel Expenses | (1,708) - (1,708) (974) |
| Office Maintenance | (167) - (167) (318) |
| Office Equipment, IT and | |
| Software | (136) - (136) (273) |
| Office Materials, Stationery, | |
| Printing & Postage | (805) - (805) (726) |
| Telephone, Broadband and | |
| Data Costs | (5,513) - (5,513) (5,356) |
| Subscriptions | (216) - (216) (180) |
| Publications | (4,765) - (4,765) (8,927) |
| Accountancy fees | (3,500) - (3,500) (3,500) |
| Foreign currency | |
| (gains)/losses | 89 - 89 (5,604) |
| (61,531) (196,419) (257,950) (232,074) |
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222 Ministries International
Notes to the Financial Statements for the Year Ended 31 December 2020
4 Trustees remuneration and expenses
During the 2020 financial year, the charity made the following transactions with trustees; (2019: £2,283)
Lazarus Yeghnazar - £1,513 - All related to essential operational work or fundraising for the Trust Maggie Yeghnazar - £608 - All related to essential operational work or fundraising for the Trust Edgar Rich - £29 - Operational travel expenses.
No trustees have received any other benefits from the charity during the year.
5 Taxation
The charity is a registered charity and is therefore exempt from taxation.
| 6 Stock |
|
|---|---|
| 2020 2019 |
|
| £ £ |
|
| Stocks | - 14,418 |
| 7 Cash and cash equivalents |
|
| 2020 2019 |
|
| £ £ |
|
| Cash at bank | 265,826 68,072 |
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222 Ministries International
Notes to the Financial Statements for the Year Ended 31 December 2020
8 Funds
| 8 Funds |
|
|---|---|
| Balance at 1 January Incoming Resources Balance at 31 December |
|
| 2020 resources expended Transfers 2020 |
|
| £ £ £ £ £ |
|
| Unrestricted funds | |
| General | |
| General | 23,119 94,020 (61,531) (581) 55,027 |
| Restricted funds | |
| Building Rent | 5,608 20,277 (17,045) (135) 8,705 |
| Business Development | 7,776 - - - 7,776 |
| Church Planting | 8,395 26,800 (499) - 34,696 |
| Humanitarian Relief | 10,925 135,232 (37,612) (8,787) 99,758 |
| Ministry in Turkey | 7,559 31,941 (29,077) - 10,423 |
| Publications Restricted | 2,076 3,101 (2,709) (24) 2,444 |
| Support to Pastors | 1,368 11,842 (9,817) - 3,393 |
| Training | - 3,406 (3,539) 133 - |
| TV/DVD Production | 1,246 164 (628) - 782 |
| Stocks (Publications and | |
| TV/DVD) | 14,418 - - (14,418) - |
| 222 Ministries USA | - 1,522 (1,546) 24 - |
| Bible Translation | - 122,690 (87,143) - 35,547 |
| Training and family | |
| support | - 14,077 (6,802) - 7,275 |
| Total restricted funds | |
| 59,371 371,052 (196,417) (23,207) 210,799 |
|
| Total funds | |
| 82,490 465,072 (257,948) (23,788) 265,826 |
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222 Ministries International
Notes to the Financial Statements for the Year Ended 31 December 2020
| December 2020 | |
|---|---|
| Balance at 1 January Incoming Resources Balance at 31 December |
|
| 2019 resources expended Transfers 2019 |
|
| £ £ £ £ £ |
|
| Unrestricted funds | |
| General | |
| General | 26,421 78,806 (77,474) (4,635) 23,118 |
| Restricted funds | |
| Building Fund | 8,675 13,950 (16,739) (278) 5,608 |
| Business Development | 7,776 - - - 7,776 |
| Church Planting | 32,977 26,743 (55,738) 4,413 8,395 |
| Humanitarian Relief | 22,540 35,839 (47,485) 32 10,926 |
| Ministry in Turkey | 5,584 35,054 (33,031) (48) 7,559 |
| Persian Community | |
| Church | 1,951 - (1,958) 7 - |
| Persecuted Families | (397) - - 397 - |
| Publications Restricted | 31 5,953 9,741 (13,649) 2,076 |
| Support to Pastors | 1,183 5,037 (4,852) - 1,368 |
| Training | 5,187 - (5,306) 119 - |
| TV/DVD Production | 1,062 192 768 (776) 1,246 |
| Stocks (Publications and | |
| TV/DVD) | - - - 14,418 14,418 |
| Total restricted funds | |
| 86,569 122,768 (154,600) 4,635 59,372 |
|
| Total funds | |
| 112,990 201,574 (232,074) - 82,490 |
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