**FELLOWSHIP AND AID TO THE CHRISTIANS OF THE EAST (also known as FACE)** **(Registered Charity No: 1178592)** **TRUSTEES’ REPORT AND** ## **ACCOUNTS** **5 APRIL 2021** ## **FELLOWSHIP AND AID TO THE CHRISTIANS OF THE EAST** **REPORT OF THE TRUSTEES** ## **FOR THE YEAR ENDED 5 APRIL 2021** ## **REFERENCE AND ADMINISTRATION DETAILS** **OPERATING NAME** FACE **TRUSTEES** John Fox (Chair of Trustees) Revd. Pascal Boidin Ms Maureen Glackin Mr Martin Lupton The Most Reverend Timothy Radcliffe (retired 14 April 2021) Mr Christopher Sayer Mr Anthony Speaight Mr Dominic Tayler **PRINCIPAL OFFICE** FACE Charity Judge Sykes Frixou York House 23 Kingsway London WC2B 6YF **GOVERNING INSTRUMENT** CIO constitution registered 31 May 2018, and amended by resolution dated 12/07/2021, in accordance with Charity Commission consent granted on 02/07/2021) **CHARITY REGISTRATION NUMBER** 1178592 **INDEPENDENT EXAMINER** David Clark FCA, DChA Chartered Accountant 1st Floor, Church House 61 College Road Bromley BR1 3QG **BANKERS** NatWest Bank Strand PO Box 414 38 Strand London WC2H 5JB **SOLICITORS** Mr Timothy O’Callaghan (solicitor) Judge Sykes Frixou York House 23 Kingsway London WC2B 6YF 1 ## **FELLOWSHIP AND AID TO THE CHRISTIANS OF THE EAST** ## **REPORT OF THE TRUSTEES (continued)** ## **FOR THE YEAR ENDED 5 APRIL 2021** The trustees present their report and the accounts of the charity for the year ended 5th April 2021. ## **STRUCTURE, GOVERNANCE AND MANAGEMENT** ## **Constitution** Fellowship and Aid to the Christians of the East (also known as FACE) is a Charitable Incorporated Organisation (CIO), incorporated under a CIO constitution registered with the Charity Commission on 31 May 2018. The charity is governed by a board of trustees. ## **Appointment of Trustees** The trustees, who are normally appointed on a 3-year mandate, have the power to appoint and remove trustees by resolution. ## **Management** The Board of Trustees meets as required to manage the affairs of the charity. ## **CHARITABLE OBJECTIVES** The objects of the charity are: - (1) To provide for the relief of poverty and sickness to people in the Middle East, the Horn of Africa and India and surrounding territories, for the public benefit by the provision of grants to local organisations, in particular but not limited to those under the patronage of the Eastern Churches; - (2) To advance education in the Middle East, the Horn of Africa and India and surrounding territories, for the public benefit by the provision of grants to places of learning, in particular but not exclusively to those under the patronage of the Eastern Churches; - (3) To advance the Christian religion in the Middle East, the Horn of Africa and India, for the public benefit by supporting and promoting the Eastern Churches, in particular but not exclusively in places where Christians are suffering from persecution, oppression or discrimination; - (4) To promote knowledge, mutual understanding, tolerance and respect between persons of different faiths in the Middle East, the Horn of Africa and India and surrounding territories, by facilitating ecumenical and interreligious relations; and - (5) To advance the education of the public in the United Kingdom by the dissemination of information and the provision of educational resources which promote a greater awareness and understanding of the Eastern Churches, and which strengthen pastoral bonds between Eastern and Western Christians. ## **PUBLIC BENEFIT** The trustees confirm that they have referred to the guidance contained in the Charity Commission’s general guidance on Public Benefit when reviewing the charity’s aims and objectives and in planning future activities. In particular, the trustees consider how planned activities will contribute to the aims and objectives they have set. ## **PRIME GOVERNANCE** As this is the third year of operation, the focus of the trustees has been on establishing the infrastructure of the organisation, developing a business plan, recruiting a permanent executive team, establishing a fundraising strategy and expanding the fundraising activities. Set out below is a summary of how the charity is operating. 2 **FELLOWSHIP AND AID TO THE CHRISTIANS OF THE EAST** ## **REPORT OF THE TRUSTEES (continued)** ## **FOR THE YEAR ENDED 5 APRIL 2021** ## **MISSION** ## **Our Aim** Fellowship and Aid to the Christians of the East (FACE) helps Eastern Christians to remain in their homelands where Christianity was born and first spread. FACE enables people of all faiths and none in the Middle East, the Horn of Africa and India to free themselves from a life of poverty, inequality and injustice. Together with the local Christian communities, FACE aims to bring lasting change to those regions through long-term projects in education, healthcare, pastoral support and interreligious dialogue. FACE strives to preserve the heritage of the Eastern Churches so that Eastern Christians remain a living testament to the roots, legitimacy and beneficence of the Christian presence in Arabic, African and Asian society, and continue to be mediators of peace and goodwill in their multi-faith communities. Whether in times of peace or war, FACE supports the work of the patriarchs, metropolitans, bishops, priests and religious of the Eastern Churches by offering grant aid to their local projects in education, health care and pastoral support - to the benefit of all, regardless of race and creed. ## **Who are the Eastern Christians?** There remain more than 26 million Eastern Christians living in the Middle East and surrounding region, though many more have been forced into exile in recent decades. Those that remain are invariably treated as second-class citizens and face discrimination, inequality, injustice and poverty. For Western Christians, they provide a direct link to the Early Church, leading us to the roots of Christianity and showing us, through their tradition and witness, a living faith in Christ. In spite of their precarious status in not being fully-fledged citizens in their own lands, they have found a role as mediators in Arab society and hitherto made an important economic contribution through professional activity as doctors, teachers, businessmen, artists, skilled craftsman and administrators. Within Arab society, the Eastern Christians have been traditionally leaven in the dough, guaranteeing peace in a fragile socio-political system. Even more than the many contributions that the Eastern Churches make to Arab society in the areas of education, healthcare and social services, the greatest source of enrichment in the region is the presence of Christians themselves. ## **Our values** - FACE is a Christian charity which is inspired by the Word of God, Catholic Social Teaching and the traditions of the Catholic Church. - FACE lives out Christ’s message of love through devotion and humble service to Eastern Christians, as well as to others of all faiths and none. - FACE believes in the power of prayer to guide and strengthen its mission; to express solidarity with those who suffer because of their devotion to Christ and his Church; and to grow pastoral bonds between Western and Eastern Christians. - FACE believes in the sanctity of life; in human life as a gift from God; in the dignity of the individual; in the right of each individual to liberty, equality, justice and well-being; in reverence for Nature; and in the protection of the Earth’s resources. - FACE believes in the freedom of belief, thought, expression of every person, not only as individuals but also as members of a community. - FACE believes that the protection of places of worship is a duty for all. - FACE, in serving Eastern Christians, supports the multi-faith communities in which the Eastern Christians live - to the benefit of all, regardless of race or creed. - FACE strives for an end to poverty through education, healthcare and welfare support. - FACE promotes unity and reconciliation in the Middle East. - FACE strives to enable and strengthen ecumenical and interreligious relations, as well as to build peaceful and harmonious community relations. - FACE is inspired by the courage and devotion of Eastern Christians, who remain loyal to Christ in the face of oppression and persecution, by their Christian witness to the love of God and neighbour, their trust in Divine Providence, their embrace of peace and goodwill between all peoples, and their perseverance in Hope. 3 ## **FELLOWSHIP AND AID TO THE CHRISTIANS OF THE EAST** ## **REPORT OF THE TRUSTEES (continued)** ## **FOR THE YEAR ENDED 5 APRIL 2021** ## **MISSION (continued)** ## **What we do** FACE delivers grant aid to projects in education, healthcare, pastoral support and interreligious dialogue, across the Middle East, North Africa, the Horn of Africa and India. ## **Our charitable activities** FACE’s principal concern and responsibility is to support those who suffer from discrimination, poverty, injustice and inequality by means of: - HUMANITARIAN AID through rapid response emergency relief schemes; - EDUCATION through supporting nurseries, kindergartens, orphanages, primary and secondary schools, professional training centres and Catholic universities; - HEALTHCARE through funding dispensaries, hospitals, institutions for the disabled, care homes, retirement homes and sheltered accommodation; - PASTORAL SUPPORT through the formation of the religious; the training of catechists and lay ministers; the welfare support of priests in need, particularly those for whom no healthcare or elderly care system exists; - INTERRELIGIOUS DIALOGUE through supporting schools, universities, dispensaries, hospitals that are accessible to all, of all faiths and none. ## **Our projects** FACE’s projects enable Eastern Christians (and others, of all faiths and none): - to rebuild their homes and communities - to educate their children - to create employment opportunities - to secure the maintenance of their churches, schools, hospitals and care homes - to promote ecumenical and interreligious relations - to be peacemakers and mediators in their multi-faith communities - to strengthen the pastoral bonds with Western Christians. ## **How we do it?** FACE collaborates with the French NGO, Oeuvre d’Orient, which for over 160 years has developed close links with the Eastern Catholic Churches; which is unique in devoting all its resources exclusively to supporting Eastern Christians through funding projects under the patronage of the Eastern Catholic Churches; and which has an unmatched legacy of working in close partnership with the patriarchs and bishops of the Eastern Churches. Currently Oeuvre d’Orient manages over 1400 charitable actions through support to 400 Christian communities across 23 countries, including Ethiopia, Egypt, Eritrea, Armenia, Iraq, Syria and Lebanon. FACE also devotes its resources exclusively to supporting Eastern Christians through funding projects under the patronage and management of the local Christian communities and working directly with the patriarchs and bishops of the Eastern Churches in the Middle East, North Africa, the Horn of Africa and India. ## **Who benefits from FACE’s activities?** Christians of the Eastern Churches in the Middle East, North Africa, the Horn of Africa and India, as well as those of all faiths and none who co-exist in their multi-faith communities. ## **How do they benefit?** The Christian communities, as well as those of other faiths who are living in proximity, are eligible to receive the benefit of our education, healthcare and pastoral projects. ## **What is the unfulfilled need?** The unfulfilled need in Iraq, Lebanon, Syria, Ethiopia and Eritrea is the restoration of peace, reconciliation, and the rebuilding of community life in the towns and villages. In the Greater Middle East, the unfulfilled need is integrated citizenship and equality for all. 4 ## **FELLOWSHIP AND AID TO THE CHRISTIANS OF THE EAST** ## **REPORT OF THE TRUSTEES (continued)** ## **FOR THE YEAR ENDED 5 APRIL 2021** ## **FUNDRAISING ACTIVITY** The charity fundraises through grants from trusts and foundations; individual donation; corporate partnership; parish collection; and gift aid. The charity does not engage in cold-calling, door to door or street fundraising. No complaints about fundraising activities have been received. However, if a complaint were to be received, we would undertake to resolve it promptly and would envisage that there would never be any need for any complaint to escalate to the stage of referral to the regulator. It is the intention of the trustees to register with the Fundraising Regulator in the forthcoming year. Meanwhile, the trustees endeavour to adhere to the standards of the Fundraising Code of Practice. The trustees are of the opinion that the charity’s overall fundraising performance was good and was conducted fully in accordance with the above principles. We are extremely grateful for the generosity of all those who have given to the work of the charity. ## **CHARITABLE ACTIVITIES** - Thanks to a restricted major donation, FACE was able, for a second year running, to offer a grant to the Oum Al Fadi Association in Lebanon as a contribution towards the costs of constructing new buildings for its seminary in Beirut. The seminary trains bi-ritual priests for ministry in Syria, Iraq, Lebanon and Eqypt. This charitable spending responds to FACE’s mission in pastoral support, which includes the formation of the religious, the training of catechists and lay ministers, and the welfare support of priests. - Thanks to a restricted donation from a charitable trust, FACE was able to offer a substantial grant to the Immaculate Conception School in Beirut, as a contribution to the costs of repairing its school buildings which had been badly damaged in the port explosion of August 2020. - Thanks to an online campaign via its website, FACE was able to offer a grant to the Immaculate Conception School in Beirut to provide meals and tuition for its socially disadvantaged pupils. ## **TRUSTEE ACTIVITY** For the first half of the financial year, all executive operations were run by the chair of trustees, John Fox, who made himself available pro bono, and full-time, to manage all aspects of financial direction and administration, fundraising strategy, information technology, communications, public relations, human resources and recruitment, as well as to set up and maintain accounting and data systems. For the second half of the financial year, John Fox continued to oversee and supervise all executive operations, pro bono and full-time, but was joined by a team of three salaried fundraising executives. As a direct result of John Fox’s voluntary service, FACE has been able to make a huge saving in labour costs and other expenses throughout the financial year. During the financial year, the board of trustees was not able to hold physical trustees’ meetings, due to the Covid lockdown and social distancing measures. But a trustees’ meeting was held via Zoom; four Zoom meetings were held by its Finance sub-committee; three Zoom meetings were held by its Resources sub-committee; and the chair of trustees was in regular telephone contact with the trustees. In addition to supervising governance administration and managing executive operations, the chair of trustees (John Fox) was engaged under contract by the board of trustees as a consultant on an ad hoc basis, to deliver and oversee the training of salaried fundraising staff in the start-up stage of the charity. The trustees’ decision was made – in the absence of John Fox – that he should be remunerated for specific ad hoc services of providing training to the salaried fundraising team. The trustees decided that the training programme was essential to the advancement of FACE, that its deliverance was outside the normal remit and activity of a trustee, and that only John Fox was equipped to organise and deliver its programme, on account of his comprehensive and detailed knowledge of the charity’s mission, business plan, strategy and infrastructure. In reaching this conclusion, the trustees took account of clause 6 of FACE’s governing document and took legal advice to ensure that they satisfied its conditions. Given John Fox’s pivotal role in starting up the charity, the trustees recognise the prime importance of effective training to executive staff to guarantee the continuity of the charity’s administration henceforward. 5 ## **FELLOWSHIP AND AID TO THE CHRISTIANS OF THE EAST** **REPORT OF THE TRUSTEES (continued)** **FOR THE YEAR ENDED 5 APRIL 2021** ## **EXECUTIVE ACTIVITY** During the second half of the financial year, a salaried permanent executive team of three fundraisers was recruited, inducted and trained to manage and advance all fundraising activities in: - Fundraising through donation from individuals and parishes; - Fundraising through donation from trusts and foundations; - Fundraising through donation from major donors; - Fundraising through donation from online campaigns; and - Fundraising through donation from parish collections. ## **FINANCIAL REVIEW** Income has grown considerably since last year as the charity has increased its profile despite the constraints of the COVID lockdown. During the year, the charity generated income of £262.5 k (2020: £37.1 k) mainly consisting of Grants & Donations. Grants were entirely amounted to £255.1k, comprising: - £190.1 k - funding for the setting up of FACE’s infrastructure and Core Costs. - £15 k - to be used to support the Oum Al Fadi Association in Lebanon in its constructing of a new building for its seminary in Beirut. - £50 k - to support the Immaculate Conception School in Beirut for its rebuilding and repairs to its damaged buildings. Expenditure also increased, rising from £29.3 k to £156.7 k. Charitable donations paid amounted to £67.8k (2020: £25.0k) including the utilisation of the afore-mentioned restricted project donations. With the higher levels of activity and the employment of staff, the level of Operational and Support costs also grew, rising from £4.3k to £88.9k. There was therefore a surplus of £105.8 k for the year (2020: £7.8 k), of which £101.2k (2020: Nil) related to Restricted Funds. This has been added to reserves to give closing reserves of £115.4k comprising unrestricted funds of £14.2 k and restricted funds of £101.2k. ## **RESERVES POLICY** By the end of the period the charity’s net assets stood at just over £115k. Of this sum, only £14.2k was held as “free” or unrestricted funds. Whilst this may appear low in relation to annual expenditure, it has to be noted that the charity held a restricted fund standing at £101.2k at the year-end for Core Costs. As the charity becomes more active, the trustees will seek to accumulate reserves to provide the charity with an adequate capital base. Their target for “free” reserves, once the Core Costs Fund has been utilised is currently set at £60k. ## **PLANS FOR THE FUTURE** It is the intention of the trustees to expand the work of the charity along the lines set out in the Activities section of this report (above). This will include recruiting, in addition to the Fundraising Manager (Trusts & Foundations), a Fundraising Manager (Major Donors) and Fundraising Manager (Individuals & Parishes) already in place, a Communications Consultant, an extra fundraising assistant and operations manager. 6 ## **FELLOWSHIP AND AID TO THE CHRISTIANS OF THE EAST** ## **REPORT OF THE TRUSTEES (continued)** ## **FOR THE YEAR ENDED 5 APRIL 2021** ## **IMPACT OF THE COVID-19 PANDEMIC** The period throughout the financial year has been one in which the impact of the COVID-19 pandemic, both on general society and the economy, has been crippling. It has inevitably had an adverse effect on the activities of the charity, not least on account of the inability to hold events and physical meetings with donors and to fundraise in parishes. Moreover, the recruitment and training process was delayed and cumbersome, and the necessity of staff working from home has not gone without presenting huge challenges. At the same time, the pandemic has meant that the need for the financial support of the type that the charity provides to Eastern Christians in the Greater Middle East has increased evermore. As much of the expenditure of the charity is discretionary in nature, it is relatively straightforward to control its costs. Therefore, the Trustees are confident that the cost-control measures that they have put in place, combined with the adoption of a fundraising strategy that takes account of the new economic and philanthropic landscape during the pandemic period, are sufficient to ensure that the charity will continue as a ‘going concern’ through the next financial year. In short, the Trustees are confident that the business will be both live and operating; it will have all the parts and features necessary to keep it in operation; and it will be able to meet all of its liabilities and financial commitments for at least a year from the date of this report. ## **STATEMENT OF TRUSTEES’ RESPONSIBILITIES** The Charities Act 2011 requires the trustees to prepare for each financial year financial statements which give a true and fair view of the charity’s financial activities during the year and of its financial position at the year end. 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 judgements and estimates that are reasonable and prudent; and - Adopt the going concern basis unless it is inappropriate to presume that the charity will continue on that basis. The trustees are responsible for ensuring proper accounting records are kept which 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 charity’s constitution and the disclosure regulations. They are also responsible for safeguarding the assets of the Charity and hence for taking reasonable steps for the prevention and detection of error, fraud and other irregularities. Signed as authorised on behalf of the Trustees on 13[th] July 2021 by: -------------------------------John Fox Chair of trustees 7 ## **INDEPENDENT EXAMINERS’ REPORT TO THE TRUSTEES OF** ## **FELLOWSHIP AND AID TO THE CHRISTIANS OF THE EAST** I report to the trustees on my examination of the accounts of the Fellowship and Aid to the Christians of the East Charitable Incorporated Organisation (the CIO) for the year ended 5 April 2021. ## **RESPONSIBILITIES AND BASIS OF THE REPORT** As the charity trustees of the CIO you are responsible for the preparation of the accounts in accordance with the Charities Act 2011 (“the 2011 Act”). I report in respect of my examination of the CIO’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 2011 Act. ## **INDEPENDENT EXAMINER’S STATEMENT** The charity’s gross income exceeded £250,000 and I am qualified to undertake the examination by being a qualified member of the Institute of Chartered Accountants in England and Wales. I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination giving me cause to believe that in any material respect: 1. accounting records were not kept in respect of the Trust as required by section 130 of the 2011 Act; or 2. the accounts do not accord with those records; or 3. the accounts do not comply with the applicable requirements concerning the form and content of the 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. D.J. Clark FCA, DChA 1[st] Floor, Church House 61 College road Bromley BR1 3QG 13[th] July 2021 8 ## **FELLOWSHIP AND AID TO THE CHRISTIANS OF THE EAST** ## **STATEMENT OF FINANCIAL ACTIVITIES** ## **FOR THE YEAR ENDED 5 APRIL 2021** |||**Unrestricted**|**Restricted**|**2021**|**2020**| |---|---|---|---|---|---| ||**Notes**|**Funds**|**Funds**|**Total**|**Total**| |||**£**|**£**|**£**|**£**| ||||||**(see Note 8)**| |**INCOME from**|||||| |Grants receivable|1|-|255,129|255,129|25,000| |Donations||7,202|-|7,202|10,777| |Other income||146|-|146|1,339| |||----------------|----------------|----------------|----------------| |**Total income**||7,348|255,129|262,477|37,116| |||----------------|----------------|----------------|----------------| |**EXPENDITURE on**|||||| |Charitable activities|2|2,750|140,494|143,244|25,000| |Support and Governance costs|2|-|13,415|13,415|4,301| |||-----------------|-----------------|-----------------|-----------------| |**Total expenditure**||2,750|153,909|156,659|29,301| |||-----------------|-----------------|-----------------|-----------------| |**Net income and net movement**|||||| |**In Funds**||**4,598**|**101,220**|**105,818**|**7,815**| |**Reconciliation of Funds**|||||| |Funds brought forward||9,561|-|9,561|1,746| |||--------------------|--------------------|--------------------|--------------------| |**Funds carried forward**||**£14,159**|**£101,220**|**£115,379**|**£9,561**| |||==========|==========|==========|==========| The notes form part of these accounts. 9 ## **FELLOWSHIP AND AID TO THE CHRISTIANS OF THE EAST** ## **BALANCE SHEET** ## **AS AT 5 APRIL 2021** ||||**2021**||**2020**| |---|---|---|---|---|---| ||Notes|**£**|**£**|**£**|**£**| |**CURRENT ASSETS**|||||| |Debtors & prepayments – Gift Aid reclaimable|||400|200|| |Cash at bank and in hand||121,025||10,361|| |||------------------||------------------|| |||121,425||10,561|| |**CURRENT LIABILITIES**|||||| |Creditors: amounts falling due|||||| |within one year|6|(6,046)||(1,000)|| |||------------------||------------------|| ||||115,379||9,561| |**NET CURRENT ASSETS**|||------------------||--------------------| |**AND NET ASSETS**|||£115,379||£9,561| ||||==========||==========| |**FUNDS AND RESERVES**|||||| |Unrestricted – General Fund|||14,159||9,561| |Restricted funds|||101,220||-| ||||------------------||--------------------| ||||£115,379||£9,561| ||||==========||==========| Approved by the Trustees on 13[th] July 2021 and signed on their behalf by -------------------------------John Fox 10 ## **FELLOWSHIP AND AID TO THE CHRISTIANS OF THE EAST** ## **PRINCIPAL ACCOUNTING POLICIES** ## **FOR THE YEAR ENDED 5 APRIL 2021** The principal accounting policies adopted, judgements and key sources of estimation uncertainty in the preparation of the accounts are set out below. ## **Basis of preparation** These accounts have been prepared for the year to 5 April 2021 with comparative information provided in respect to the year to 5 April 2020. The accounts have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant accounting policies below or the notes to these accounts. The accounts 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 United Kingdom and Republic of Ireland (FRS 102) (Charities SORP FRS 102) issued on 16 July 2014, the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Charities Act 2011. The charity constitutes a public benefit entity as defined by FRS 102. The accounts are presented in sterling and are rounded to the nearest pound. ## **Critical accounting estimates and areas of judgement** Preparation of the accounts may require the Trustees to make significant judgements and estimates. The Trustees consider that there were no such key areas in the accounts where these judgements and estimates have had to to made. ## **Assessment of going concern** The Trustees have assessed whether the use of the going concern assumption is appropriate in preparing these accounts. The Trustees have made this assessment in respect to a period of one year from the date of approval of these accounts. The Trustees of the Charity have concluded that there are no material uncertainties related to events or conditions that may cast significant doubt on the ability of the Charity to continue as a going concern. The Trustees are of the opinion that the charity will have sufficient resources to meet its liabilities as they fall due. Any significant areas of judgement that affect items in the accounts are detailed above. With regard to the next accounting period, the year ending 5 April 2022, the Trustees consider that there are no significant areas that affect the carrying value of the assets held by the Charity. ## **Foreign currencies** Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of the transaction. Exchange differences are taken into account in arriving at the net movement in funds. ## **Income recognition** Income is recognised in the period in which the charity has entitlement to the income, the amount of income can be measured reliably and it is probable that the income will be received. Income comprises grants, donations, investment income and other income. Donations are recognised when the charity has confirmation of both the amount and settlement date. In the event of donations pledged but not received, the amount is accrued for where the receipt is considered probable. In the event that a donation is subject to conditions that require a level of performance before the charity is entitled to the funds, the income is deferred and not recognised until either those conditions are fully met, or the fulfilment of those conditions is wholly within the control of the charity and it is probable that those conditions will be fulfilled in the reporting period. 11 ## **FELLOWSHIP AND AID TO THE CHRISTIANS OF THE EAST** ## **PRINCIPAL ACCOUNTING POLICIES** ## **FOR THE YEAR ENDED 5 APRIL 2021** In accordance with the Charities SORP FRS 102 volunteer time is not recognised. Legacies are included in the Statement of Financial Activities when the charity is entitled to the legacy, the executors have established that there are sufficient surplus assets in the estate to pay the legacy, and any conditions attached to the legacy are within the control of the charity. Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity; this is normally upon notification of the interest paid or payable by the bank. ## **Expenditure recognition** Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the Charity to make a payment 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. All expenditure is accounted for on an accruals basis. Expenditure comprises direct costs and support costs. All expenses, including support costs, are allocated or apportioned to the applicable expenditure headings. The classification between activities is as follows: - Expenditure on raising funds includes all expenditure associated with raising funds for the charity. - Expenditure on charitable activities includes all costs associated with furthering the charitable purposes of the Charity through the provision of its charitable activities. Such costs include charitable grants and donations, direct and support costs in respect of the operations of the charity. Charitable grants and donations are made where the Trustees consider there is real need following a review of the details of each particular case and comprise single year payments rather than multi-year grants. Grants payable are included in the Statement of Financial Activities when approved and when the intended recipient has either received the funds or been informed of the decision to make the grant and has satisfied all performance conditions. Grants approved but not paid at the end of the financial year are accrued. Grants where the beneficiary has not been informed or has to fulfil performance conditions before the grant is released are not accrued for but are disclosed as financial commitments in the notes to the accounts. All expenditure is stated inclusive of irrecoverable VAT. Support costs represent indirect charitable expenditure. In order to carry out the primary purposes of the charity it is necessary to provide support in the form of personnel and administrative functions. 12 ## **FELLOWSHIP AND AID TO THE CHRISTIANS OF THE EAST** ## **PRINCIPAL ACCOUNTING POLICIES** ## **FOR THE YEAR ENDED 5 APRIL 2021** ## **Tangible fixed assets** Any assets costing more than £2,000 and with an expected useful life exceeding one year are capitalised. ## **Debtors** Debtors are recognised at their settlement amount, less any provision for non-recoverability. Prepayments are valued at the amount prepaid. They are discounted to the present value of the future cash receipt where such discounting is material. ## **Cash at bank and in hand** Cash at bank and in hand represents such accounts and instruments that are available on demand or have a maturity of less than three months from the date of acquisition. Deposits for more than three months but less than one year have been disclosed as short-term deposits. Cash placed on deposit for more than one year is disclosed as a fixed asset investment. ## **Creditors and provisions** Creditors and provisions are recognised when there is an obligation at the balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably. Creditors and provisions are recognised at the amount the charity anticipates it will pay to settle the debt. They have been discounted to the present value of the future cash payment where such discounting is material. ## **Fund structure** General or Unrestricted Funds represent those monies which are freely available for application towards achieving any charitable purpose that falls within the Charity’s charitable objects. Restricted Funds comprise monies raised for, or their use restricted to a specific purpose by means of donor imposedconditions. ## **Pension schemes** A defined contribution scheme is available for Staff. Contributions in respect of the defined contribution pension scheme are charged to the Statement of Financial Activities when they are payable to the scheme. The Charity’s contributions are limited to the contributions disclosed in note 4. There were no outstanding contributions at the year end. The Charity has no liability beyond making its contributions and paying across the deductions for the employees’ contributions. 13 ## **FELLOWSHIP AND AID TO THE CHRISTIANS OF THE EAST** ## **NOTES TO THE ACCOUNTS (continued)** ## **YEAR ENDED 5 APRIL 2021** |**1.**|**GRANTS RECEIVABLE**|**Unrestricted**|**Restricted**|**2021**|**2020**| |---|---|---|---|---|---| |||**Funds**|**Funds**|**Total**|**Total**| |||**£**|**£**|**£**|**£**| ||For the work of the Oum Al Fadi||||| ||Association in Lebanon|-|15,000|15,000|25,000| ||Dromintee Trust for the Immaculate||||| ||Conception School, Beirut|-|50,000|50,000|-| ||Œuvre d'Orient|-|190,129|190,129|-| |||-----------------|-----------------|-----------------|-----------------| |||£-|£255,129|£255,129|£25,000| |||==========|==========|==========|=====-===| ||**Prior Year**||||| ||For the work of the Oum Al Fadi||||| ||Association in Lebanon|£-|£25,000|£25,000|| |||==========|==========|==========|| |**2.**|**EXPENDITURE**||||| |||**Unrestricted**|**Restricted**|**2021**|**2020**| |||**Funds**|**Funds**|**Total**|**Total**| |||**£**|**£**|**£**|**£**| ||**Charitable activities**||||| ||**Charitable project - Grants**||||| ||Oum Al Fadi||||| ||(Redemptoris Mater, Beirut)|-|15,000|15,000|25,000| ||Immaculate Conception School in Beirut|2,750|50,000|52,750|-| |||-----------------|-----------------|-----------------|-----------------| |||2,750|65,000|67,750|25,000| |||-----------------|-----------------|-----------------|-----------------| ||**Direct costs**||||| ||Staff Costs|-|40,534|40,534|-| ||Advisory Fees|-|4,960|4,960|-| ||Consultant's Fees (see note 5)|-|30,000|30,000|-| |||-----------------|-----------------|-----------------|-----------------| |||-|75,494|75,494|-| ||**Support costs**||||| ||Telephone, Postage and Stationery|-|1,997|1,997|431| ||Travel and Trustee expenses|-|1,380|1,380|437| ||Equipment, IT, Website and Software|-|7,679|7,679|-| ||Donor Hospitality|-|73|73|382| ||Events|-|-|-|1,481| ||Recruitment costs|-|-|-|400| ||Other Expenses|-|1,126|1,126|170| ||**Governance costs**||||| ||Independent Examiner's fee|-|1,160|1,160|1,000| |||-----------------|-----------------|-----------------|-----------------| |||-|13,415|13,415|4,301| |||-----------------|-----------------|-----------------|-----------------| ||**Total Payments**|£2,750|£153,909|£156,659|£29,301| |||========|========|========|-========| 14 ## **FELLOWSHIP AND AID TO THE CHRISTIANS OF THE EAST** ## **NOTES TO THE ACCOUNTS (continued)** ## **YEAR ENDED 5 APRIL 2021** ## **2. EXPENDITURE (continued)** |||**Unrestricted**|**Restricted**||| |---|---|---|---|---|---| |||**Funds**|**Funds**|**Total**|| |||**£**|**£**|**£**|| ||**Prior year**||||| ||**Charitable activities**||||| ||Charitable projects - for the work of the||||| ||Oum Al Fadi Association in Lebanon|-|25,000|25,000|| |||-----------------|-----------------|-----------------|| ||**Support costs**||||| ||Telephone, Postage and Stationery|431|-|431|| ||Travel and Trustee expenses|437|-|437|| ||Equipment, IT, Website and Software|-|-|-|| ||Donor Hospitality|382|-|382|| ||Events|1,481|-|1,481|| ||Recruitment costs|400|-|400|| ||Other Expenses|170|-|170|| ||**Governance costs**||||| ||Independent Examiner's fee|1,000|-|1,000|| |||-----------------|-----------------|-----------------|| |||4,301|-|4,301|| |||-----------------|-----------------|-----------------|| ||**Total Payments**|£4,301|£25,000|£29,301|| |||========|========|========|| |**3.**|**GOVERNANCE COSTS**|**Unrestricted**|**Restricted**|**2021**|**2020**| |||**Funds**|**Funds**|**Total**|**Total**| |||**£**|**£**|**£**|**£**| ||**Charitable activities**||||| ||Fees payable to independent examiner||||| ||(including VAT) after-date|£-|£1,160|£1,160|£1,000| |||========|========|========|========| ## **4.** |**STAFF COSTS AND REMUNERATION OF**|**KEY MANAGEMENT PERSONNEL**|| |---|---|---| ||**2021**|**2020**| ||**Total**|**Total**| ||**£**|**£**| |Wages & salaries|30,340|-| |Social security costs|7,640|-| |Pension contributions|2,554|-| ||-----------------|----------------| ||£40,534|£-| ||=========|========| 15 ## **FELLOWSHIP AND AID TO THE CHRISTIANS OF THE EAST** ## **NOTES TO THE ACCOUNTS (continued)** ## **YEAR ENDED 5 APRIL 2021** ## **4. STAFF COSTS AND REMUNERATION OF KEY MANAGEMENT PERSONNEL (continued)** The average number of staff employed in the year was: |The average number of staff employed in the year was:||| |---|---|---| ||**2021**|**2020**| ||**Number**|**Number**| |Administration|3|-| ||========|========| |No employee has received remuneration at a rate of £60,000 per annum or more (2020: Nil).||| |**TRUSTEE REMUNERATION & RELATED PARTY**||| |**TRANSACTIONS**||| ||**2021**|**2020**| ||**Total**|**Total**| ||**£**|**£**| |No trustee received any remuneration for trustee services||| |from the charity during the year.||| |Reimbursement of trustees’ expenses to one trustee (2021:||| |none) amounted to|£121|£-| ||========|========| ## **5. TRUSTEE REMUNERATION & RELATED PARTY TRANSACTIONS** Under Clause 6 (2) of the CIO’s constitution, a Charity Trustee or Connected Person may enter into a contract for the supply of services, or of goods that are supplied in connection with the provision of services, to the CIO where that is permitted in accordance with, and subject to the conditions in sections, 185 to 188 of the Charities Act 2011. |In accordance with this Clause, the following sum was paid to John Fox||| |---|---|---| |(trustee) for Training Services.|£30,000|£-| ||========|========| In the opinion of the trustees, they are the key management personnel of the CIO. ## **6.** |**CREDITORS: amounts falling**||| |---|---|---| |**due within one year**||| ||**2021**|**2020**| ||**Total**|**Total**| ||**£**|**£**| |Accruals|1,200|1,000| |Taxation and Social Security|4,846|-| ||-----------------|-----------------| ||£6,046|£1,000| ||========|========| 16 ## **FELLOWSHIP AND AID TO THE CHRISTIANS OF THE EAST** ## **NOTES TO THE ACCOUNTS (continued)** ## **YEAR ENDED 5 APRIL 2021** ## **7. RESTRICTED FUNDS** + ||**Balance at**|||**Balance at**| |---|---|---|---|---| |**Year ended 5 April 2021**|**start of year**|**Income**|**Expenditure**|**end of year**| ||**£**|**£**|**£**|**£**| |Oum Al Fadi (Redemptoris Mater, Beirut)|-|15,000|(15,000)|-| |Immaculate Conception School in Beirut|-|50,000|(50,000)|-| |Œuvre d'Orient – Core Costs|-|190,129|(88,909)|101,220| ||-------------------|-------------------|-------------------|-------------------| ||£-|£255,129|£(153,909)|£101,220| ||==========|==========|==========|==========| ||**Balance at**|||**Balance at**| ||**start of**|||**end of year**| ||**year**|**Income**|**Expenditure**|| |**Prior year**||||| |Oum Al Fadi (Redemptoris Mater, Beirut)|£-|£25,000|£(25,000)|£-| ||==========|==========|==========|==========| The above funds were held entirely as cash at bank at the end of the year. ## **Restricted Funds** ## **Oum Al Fadi (Redemptoris Mater, Beirut) Fund** This is the fund of the Redemptoris Mater Seminary which was established to finance contributions towards the costs of constructing the new buildings for its seminary in Beirut. The seminary trains inter-rite priests for ministry in Syria, Iraq, Lebanon and Egypt. This charitable spending relates to FACE’s mission in pastoral support, which includes the formation of the religious, the training of catechists and lay ministers, and the welfare support of priests. ## **Immaculate Conception School, Beirut Fund** This is a fund established to finance contributions towards the costs of repairing the school buildings in Beirut which had been badly damaged in the port explosion of August 2020. ## **Œuvre d'Orient – Core Costs** A restricted donation from Oeuvre d’Orient has been granted to FACE to cover core costs during its initial 5-year start-up business plan, and its expenditure is spread over two financial years. 17 ## **FELLOWSHIP AND AID TO THE CHRISTIANS OF THE EAST** ## **NOTES TO THE ACCOUNTS (continued)** ## **YEAR ENDED 5 APRIL 2021** ## **8. COMPARATIVE STATEMENT OF FINANCIAL ACTIVITIES FOR PREVIOUS YEAR** |||**Unrestricted**|**Restricted**|**2020**| |---|---|---|---|---| ||**Notes**|**Funds**|**Funds**|**Total**| |**UNRESTRICTED FUNDS**||**£**|**£**|**£**| |**INCOME from**||||| |Grants|1|-|25,000|25,000| |Donations||10,777|-|10,777| |Other income||1,339|-|1,339| |||----------------|----------------|----------------| |**Total income**||12,116|25,000|37,116| |||----------------|----------------|----------------| |**EXPENDITURE on**||||| |Charitable activities|2|-|25,000|25,000| |Support and Governance costs|2|4,301|-|4,301| |||-----------------|-----------------|-----------------| |**Total expenditure**||4,301|25,000|29,301| |||-----------------|-----------------|-----------------| |**Net income and net movement**||||| |**In Funds**||**7,815**|**-**|**7,815**| |**Reconciliation of Funds**||||| |Funds brought forward||1,746|-|1,746| |||--------------------|--------------------|--------------------| |**Funds carried forward**||**£9,561**|**£-**|**£9,561**| |||==========|==========|==========| 18