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2020-12-31-accounts

REGISTERED CHARITY NUMBER: 1184325

IGLESIA NI CRISTO (CHURCH OF CHRIST)

REPORT OF THE TRUSTEES AND AUDITED FINANCIAL STATEMENTS FOR THE PERIOD 8 JULY 2019 TO 31 DECEMBER 2020

Albury Associates Limited Chartered Accountants & Statutory Auditor 2nd Floor, One Hobbs House, Harrovian Business Village Bessborough Road Harrow Middlesex HA1 3EX

IGLESIA NI CRISTO (CHURCH OF CHRIST)

CONTENTS OF THE FINANCIAL STATEMENTS FOR THE PERIOD 8 JULY 2019 TO 31 DECEMBER 2020

Page
Report of the Trustees 1 to 5
Report of the Independent Auditors 6 to 7
Statement of Financial Activities 8
Statement of Financial Position 9
Statement of Cash Flows 10
Notes to the Statement of Cash Flows 11
Notes to the Financial Statements 12 to 16

IGLESIA NI CRISTO (CHURCH OF CHRIST)

REPORT OF THE TRUSTEES FOR THE PERIOD 8 JULY 2019 TO 31 DECEMBER 2020

The trustees present their report with the financial statements of the charity for the period 8 July 2019 to 31 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 Republic of Ireland (FRS 102) (effective 1 January 2019).

The financial statements are for the period from 08 July 2019 to 31 December 2020. As a result, the information contained within the financial statements relate to a period longer than 12 months. A longer period of the financial statements has been used as a result of the change in the charitable status of the organisation from an unincorporated charity to a Charitable Incorporated Organistion (CIO) on 08 July 2019. In order to ensure that consistency of year-end dates were applied the Trustees adapted 31 December as the year-end date for the CIO.

OBJECTIVES AND ACTIVITIES

Objectives and aims

The objectives of the Iglesia Ni Cristo (Church Of Christ) embody its purposes as a Charitable Incorporated Organisation (CIO). The missions include: the advancement of religion, as well as the dissemination and propagation of the Christian faith and teachings as written in the Bible, the Holy Scriptures; establishment of local congregations, group worship services, and extensions within the United Kingdom that the dissemination and propagation of this religious faith may reach, subject to existing laws of England and Wales.

Associated with these objectives, the CIO aims to establish places for official use of its members in different congregations such as for regular worship services, in-house training seminars, counselling, and other charitable services for both members and non-members. As proof of this, during 2019, two new extensions to congregations were established in the following locations and dates of establishment:

Taunton 8 July 2019
Heathrow East 16 August 2019

The CIO is determined to continue establishing additional places and local congregations for official use of its members in the United Kingdom.

The CIO also holds various activities in the United Kingdom in order to enhance and strengthen the spiritual life of the Church members in general. These activities include: holding religious worship through worship services; prayer meetings, pastoral visitation of brethren; and propagation of the gospel through bible studies, evangelical missions and distribution of religious publications.

Additionally, the CIO recognises social and humanitarian concerns and demonstrates this through continuing activities in local communities within the United Kingdom and worldwide. The CIO is determined to engage more in charitable works, while expanding its mission to grow in number for the organisation.

The CIO has developed and adopted policies in the advancement of these objectives and has made no changes to these policies during the period. In the furtherance of the actions that have been carried out by the original Charity in converting to a Charitable Incorporated Organisation (CIO) and registering its operations and activities in England and Wales, the CIO Trustees have plans to continue work on completing the process in Scotland and Northern Ireland.

Grants are made customarily to other Iglesia Ni Cristo (Church Of Christ) congregations worldwide after the Trustees' have assessed that the project benefitting from the grants complies with the objectives of the CIO in accordance with its Constitution.

Page 1

IGLESIA NI CRISTO (CHURCH OF CHRIST)

REPORT OF THE TRUSTEES FOR THE PERIOD 8 JULY 2019 TO 31 DECEMBER 2020

ACHIEVEMENT AND PERFORMANCE Achievements and Performance

The Charity has successfully and significantly met its goals and objectives in expansion through propagation, acquisition of properties, and strengthening of morals and spiritual values of its members.

Despite the COVID-19 pandemic, the Iglesia Ni Cristo (Church Of Christ) members continued to conduct twice-weekly worship services online through video conferencing, and had the option to give their voluntary offerings through online banking during the lockdown. Therefore, the CIO also changed the manner in which the financial reports are prepared.

The CIO will continue to renovate the property in Glasgow, Scotland, that was acquired on 25 April 2019, to be used by the respective congregation as a place of worship in the near future. In addition to this, the CIO has also helped a local congregations in mainland Europe with the renovation of the property of the Iglesia Ni Cristo (Church Of Christ) in Dordrecht, The Netherlands.

The Iglesia Ni Cristo (Church Of Christ), with all modesty, contributes greatly to the moral and spiritual enrichment of its members to benefit their families and the local communities in which the members reside. This is due to the principles upheld in the Church, which promote a quality of life guiding people to be honest, law-abiding and God-fearing.

The leadership members in the Church continue to guide members of the Church to be considerate to the welfare of others in the spirit of love and compassion. This has been the hallmark of the Iglesia Ni Cristo (Church Of Christ) for more than a century of its existence in the Philippines, and almost half a century in the United Kingdom. One of the ways that the Church continues to contribute to the community is through various charitable activities called "INC Giving" activities. These types of activities are open to everyone in the local communities, whether or not they are members of the Iglesia Ni Cristo (Church Of Christ).

The Iglesia Ni Cristo (Church of Christ) engaged in more charitable activities, such as community service through clean-up drives to promote the importance of the environment and giving donations of food and clothes to local charities. This year's events include the following:

clean-up drives to promote the importance of the environment and giving donations of
This year's events include the following:		 food and clothes to local charities
Event Date
INC Giving Clean Up Drive (Bournemouth) 14 July 2019
INC Giving Clean Up Drive (Glasgow) 25 August 2019
INC Giving Food Donation (Battersea) 29 September 2019
INC Giving Winter Coat Donation (Flintshire) 11 October 2019
INC Giving Blood Donation (Manchester) 3 November 2019
INC Giving Singing For A Cause (Heathrow North) 24 November 2019
INC Giving Toys and Book Donation (Stratford) 29 December 2019
INC Giving Clean Up Drive (Leeds) 04 January 2020
INC Giving Winter Clothes and Shoes Donation (Portsmouth) 15 February 2020
INC Giving Frontliners Appreciation Day (Heathrow) 23 May 2020
INC Giving Clean Up Drive (Bournemouth) 28 June 2020
INC Giving Firemens Appreciation Day (Glasgow and Edinburgh) 5 July 2020
INC Giving Medical Profession Appreciation Day (Birmingham) 5 September 2020
INC Giving Food Donation (Romford) 20 October 2020
INC Giving Parent Appreciation Day (Camberwell) 20 December 2020

The Charity also continued to hold a series of activities in order to edify members and to share the Christian faith and teachings upheld in the Iglesia Ni Cristo (Church of Christ). This year's activities included:

Event Date
Musical Production (INCenter Stage) 3 August 2019
Unity Games (Sports Competition) 26 August 2016
Children's Cooking Challenge 20 October 2019
Musical Competition 29 December 2019
Children's Worship Service (CWS) Art Competition 26 January 2020
GCSE Help - Tutoring and Mentoring 16 February 2020
Christian Family Organization (CFO) Arts Competition 17 May 2020
Meet and Greet Online 13 June 2020
Photo Editing Online Seminar 3 August 2020
Video Editing Online Seminar 17 August 2020
Children's Worship Service (CWS) Spelling Bee 27 September 2020
Mr & Mrs Chef (Cooking Competition) 8 November 2020
INCinema Film Showing - Online 24 December 2020

Page 2

IGLESIA NI CRISTO (CHURCH OF CHRIST)

REPORT OF THE TRUSTEES FOR THE PERIOD 8 JULY 2019 TO 31 DECEMBER 2020

The CIO holds the above-mentioned activities to promote the enhancement of social and cultural values, by guiding its members to wholesome and enriching activities in sports, music and the arts. As well as the activities listed above, the Church also promoted leadership and skills enhancement activities through planning conferences and seminars, which were held in various locations in the United Kingdom, such as Battersea and Newport, Wales when the possibility existed and through different seminars, which were held online through video conferencing, at other times.

These activities are held by the Iglesia Ni Cristo (Church of Christ) to strengthen the faith of the members of the Church and to strengthen the bond between them in a fun and friendly environment. Non-Church members are also invited to these events, so that they can have more exposure to the Christian faith and teachings upheld in the Iglesia Ni Cristo (Church Of Christ) through the love of the brotherhood.

The CIO also carries out outreach programs to assist people, regardless of their religious beliefs, who are suffering as a result of poverty, natural disasters and catastrophes. The Iglesia Ni Cristo (Church Of Christ) embraces the teaching of the Bible to love our neighbours, countrymen and brethren. Therefore, the Charity has also been helping the Iglesia Ni Cristo (Church Of Christ) Central Administration's program on International Aid to Humanity, which benefits many impoverished people in various parts of the world.

FINANCIAL REVIEW

Financial position

The Statement of Financial Activities show net income for the period of £1,517,852. The total reserves at the period end amounts to £20,477,084

Financial Review

After reviewing the CIO's financial position at the end of the reporting period, the Trustees are satisfied with the financial position at the Balance Sheet date.

The policy of the CIO remains that unrestricted funds not designated for a specific use should be maintained at a level equivalent to between three and six months expenditure. The Trustees foresee that this level of reserved amounts will ensure that the CIO will be able to continue the current activities should there be a significant drop in funding. During this allotted time, the Trustees will then promote ways in which additional funds may be raised. The CIO has successfully maintained this goal of reserves throughout the year.

There are no uncertainties about the CIO's ability to continue. The Trustees also maintain that there are no funds that are materially in deficit.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Structure, Governance and Management

The CIO was established as a Charitable Incorporated Organisation (CIO) on 8 July 2019, emanating from the transfer of its activities, assets and liabilities from Iglesia Ni Cristo (Church of Christ), an unincorporated Charity, previously operating under Charity Number 265828.

The Chairman of the Board of Trustees appoints the Trustees when a vacancy arises. The newly appointed Trustees' induction includes the following: meeting the office staff; being briefed on procedures; updates being issued by concerned government agencies affecting their roles; and addressing any training needs they may have.

The Trustees manage the CIO together and ensure that the expenditure of all funds received are in accordance with the trust deed.

This CIO is part of a wider network, also called Iglesia Ni Cristo (Church Of Christ), an international Christian denomination religion originating in the Philippines and is currently located around the world.

The Trustees are responsible for the management of risks that the CIO would face. The Trustees have undertaken a full risk assessment of the organisation and have introduced various key controls. The Trustees also review these controls regularly. The Trustees have assessed the major risks to which the CIO is exposed, and are satisfied that systems are in place to mitigate exposure to the major risks.

One of the key risks of the CIO is the risk of an event having a negative impact on its reputation. The Trustees are satisfied that a policy and a satisfactory action plan is in place to ensure that this risk is adequately mitigated.

Risk management

The CIO acknowledge that the Trustees have a duty to identify and review the risks to which it is exposed and to ensure appropriate controls are in place to provide reasonable assurance against fraud, error and other irregularities.

Page 3

IGLESIA NI CRISTO (CHURCH OF CHRIST)

REPORT OF THE TRUSTEES FOR THE PERIOD 8 JULY 2019 TO 31 DECEMBER 2020

REFERENCE AND ADMINISTRATIVE DETAILS Registered Charity number 1184325

Principal address

79 Staines Road West Sunbury on Thames Surrey TW16 7AH

Trustees

Trustees
Name Position Date Appointed
Mr Eduardo V Manalo Executive Minister 21 February 2018
Mr Angelo Erano Ventura Manalo CFO Coordinator 01 September 2021
Mr Glicerio P Santos IV General Auditor 13 May 2021
Mr Ernesto V Suratos General Treasurer 21 February 2018
Mr Bienvenido C Santiago Sr General Evangelist 21 February 2018
Mrs Dorothy Kristine M Orosa Corporate Secretary 21 February 2018
Mr Voltaire Arsenio Arceta Tamisin Trustee 01 September 2021
Mr Glenn Romero Gomez Trustee 07 February 2018
Mr Philip Norman Velasquez Trustee 07 February 2018
Mr Allistair Cagnayo Trustee 07 February 2018
Mr Vernon Jesus Cunanan Trustee 07 February 2018
Mr Gerry Sison Trustee 07 February 2018

Long standing General Auditor and Trustee, Mr Glicerio B Santos Jr passed away on 03 April 2021. Iglesia Ni Cristo (Church Of Christ) acknowledges the unique role that he has played in the CIO and worldwide organisation and his dedication to the furtherance of the objectives of the Charity.

Auditors

Albury Associates Limited Chartered Accountants & Statutory Auditor 2nd Floor, One Hobbs House, Harrovian Business Village Bessborough Road Harrow Middlesex HA1 3EX

Bankers

National Westminster Bank 67 High Street Twickenham Staines-upon-Thames Staines TW18 4PU

Barclays Bank 7-11 St John's Hill London SW11 1TR

EVENTS SINCE THE END OF THE PERIOD

Information relating to events since the end of the period is given in the notes to the financial statements.

TRUSTEES' RESPONSIBILITY STATEMENT

The trustees are responsible for preparing the Report of the Trustees and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Page 4

IGLESIA NI CRISTO (CHURCH OF CHRIST)

REPORT OF THE TRUSTEES FOR THE PERIOD 8 JULY 2019 TO 31 DECEMBER 2020

TRUSTEES' RESPONSIBILITY STATEMENT - continued

The law applicable to charities in England and Wales, the Charities Act 2011, Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed 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, including the income and expenditure, of the charity for that period. In preparing those financial statements, the trustees are required to

The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charity and to enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 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.

Approved by order of the board of trustees on 29 October 2021 and signed on its behalf by:

Mr Gerry Sison - Trustee

Page 5

REPORT OF THE INDEPENDENT AUDITORS TO THE TRUSTEES OF IGLESIA NI CRISTO (CHURCH OF CHRIST)

Opinion

We have audited the financial statements of Iglesia Ni Cristo (Church of Christ) (the 'charity') for the period ended 31 December 2020 which comprise the Statement of Financial Activities, the Statement of Financial Position, the Statement of Cash Flows and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

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 Auditors' 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 we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:

Other information

The trustees are responsible for the other information. The other information comprises the information included in the Annual Report, other than the financial statements and our Report of the Independent Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters where the Charities (Accounts and Reports) Regulations 2008 requires us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the Trustees' Responsibilities Statement, the trustees are responsible for the preparation of the financial statements which 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 liquidate the charity or to cease operations, or have no realistic alternative but to do so.

Page 6

REPORT OF THE INDEPENDENT AUDITORS TO THE TRUSTEES OF IGLESIA NI CRISTO (CHURCH OF CHRIST)

Our responsibilities for the audit of the financial statements

We have been appointed as auditors under Section 144 of the Charities Act 2011 and report in accordance with the Act 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 a Report of the Independent Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Independent Auditors.

Use of our report

This report is made solely to the charity's trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity's trustees those matters we are required to state to them in an auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity's trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Albury Associates Limited Chartered Accountants & Statutory Auditor 2nd Floor, One Hobbs House, Harrovian Business Village Bessborough Road Harrow Middlesex HA1 3EX

29 October 2021

Kiran Patel BA FCA - Senior Statutory Auditor

Page 7

IGLESIA NI CRISTO (CHURCH OF CHRIST)

STATEMENT OF FINANCIAL ACTIVITIES FOR THE PERIOD 8 JULY 2019 TO 31 DECEMBER 2020

Notes
INCOME AND ENDOWMENTS FROM
Donations and legacies
2
Charitable activities
4
Management and Administration
Investment income
3
Other income
Total
EXPENDITURE ON
Raising funds
5
Charitable activities
6
Property Rentals and Hire
Management and Administration
Building Services and Utilities
Donations to related charities
Depreciation
Other
Total
NET INCOME
RECONCILIATION OF FUNDS
Total funds brought forward
TOTAL FUNDS CARRIED FORWARD		 Unrestricted
fund
£
7,356,880
74,414
1,048
1,869,552
9,301,894
23,560
329,198
2,711,694
231,866
4,377,883
113,095
334,515
8,121,811
1,180,083
1,916,413
3,096,496		 Restricted
funds
£
2,573,789
-
533
611,548
3,185,870
-
308,969
249,815
142,732
-
-
2,146,585
2,848,101
337,769
17,042,819
17,380,588		 Total
funds
£
9,930,669
74,414
1,581
2,481,100
12,487,764
23,560
638,167
2,961,509
374,598
4,377,883
113,095
2,481,100
10,969,912
1,517,852
18,959,232
20,477,084

The notes form part of these financial statements

Page 8

IGLESIA NI CRISTO (CHURCH OF CHRIST)

STATEMENT OF FINANCIAL POSITION 31 DECEMBER 2020

Notes
FIXED ASSETS
Tangible assets
11
CURRENT ASSETS
Debtors
12
Cash at bank and in hand
CREDITORS
Amounts falling due within one year
13
NET CURRENT ASSETS
TOTAL ASSETS LESS CURRENT LIABILITIES
NET ASSETS
FUNDS
14
Unrestricted funds:
Central Fund
Restricted funds:
Local fund
District Fund
Properties
TOTAL FUNDS		 Unrestricted
fund
£
1,395,460
40,981
1,694,256
1,735,237
(34,200)
1,701,037
3,096,497
3,096,497		 Restricted
funds
£
17,222,289
-
158,298
158,298
-
158,298
17,380,587
17,380,587		 Total
funds
£
18,617,749
40,981
1,852,554
1,893,535
(34,200)
1,859,335
20,477,084
20,477,084
3,096,497
105,686
78,280
17,196,621
17,380,587
20,477,084

The financial statements were approved by the Board of Trustees and authorised for issue on 29 October 2021 and were signed on its behalf by:

Mr Gerry Sison - Trustee

Mr Vernon Cunanan - Trustee

The notes form part of these financial statements

Page 9

IGLESIA NI CRISTO (CHURCH OF CHRIST)

STATEMENT OF CASH FLOWS FOR THE PERIOD 8 JULY 2019 TO 31 DECEMBER 2020

Notes
Cash flows from operating activities
Cash generated from operations
1
Net cash provided by operating activities
Cash flows from investing activities
Purchase of tangible fixed assets
Interest received
Net cash (used in)/provided by investing activities
Cash flows from financing activities
Cash at bank and in hand transferred
Debtors transferred
Creditors transferred
Net cash provided by financing activities
Change in cash and cash equivalents in
the reporting period
Cash and cash equivalents at the
beginning of the reporting period
Cash and cash equivalents at the end of
the reporting period		 £
1,894,136
1,894,136
(991,416)
1,581
(989,835)
971,333
47,422
(70,502)
948,253
1,852,554
-
1,852,554

The notes form part of these financial statements

Page 10

IGLESIA NI CRISTO (CHURCH OF CHRIST)

NOTES TO THE STATEMENT OF CASH FLOWS FOR THE PERIOD 8 JULY 2019 TO 31 DECEMBER 2020

1.
RECONCILIATION OF NET INCOME TO NET CASH FLOW FROM OPERATING ACTIVITIES
Net income for the reporting period (as per the Statement of Financial
Activities)
Adjustments for:
Depreciation charges
Interest received
Increase in debtors
Increase in creditors
Net cash provided by operations		 £
1,517,852
384,646
(1,581)
(40,981)
34,200
1,894,136
2.
ANALYSIS OF CHANGES IN NET FUNDS
Net cash
Cash at bank and in hand
Total		 At 8/7/19
£
-
-
-		 Cash flow
£
1,852,554
1,852,554
1,852,554		 At 31/12/20
£
1,852,554
1,852,554
1,852,554

The notes form part of these financial statements

Page 11

IGLESIA NI CRISTO (CHURCH OF CHRIST)

NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD 8 JULY 2019 TO 31 DECEMBER 2020

1. ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements of the charity, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) 'Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Charities Act 2011. The financial statements have been prepared under the historical cost convention.

Income

All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably.

Expenditure

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, 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 accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.

Grants offered subject to conditions which have not been met at the year end date are noted as a commitment but not accrued as expenditure.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Freehold property - no depreciation provided
Fixtures and fittings - Straight line over 10 years
Motor vehicles - Straight line over 5 years

Depreciation is not provided in respect of freehold properties as the Trustees believe that the present market value is not less than the cost stated in the accounts. The Charity also follows a regular programme of maintaining the properties in a good state by way of incurring expenditure on repairs and maintenance.

Taxation

The charity is exempt from tax on its charitable activities.

Fund accounting

Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.

Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.

Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.

Hire purchase and leasing commitments

Rentals paid under operating leases are charged to the Statement of Financial Activities on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits

The charity operates a defined contribution pension scheme. Contributions payable to the charity's pension scheme are charged to the Statement of Financial Activities in the period to which they relate.

Restricted funds

Building renovation and purchases

These restricted funds are received from other related charities. The funds are restricted to the purchase and renovation of properties, mainly to be used for worship services, training and seminars, counselling and other charitable services for both members and non-members.

Page 12

IGLESIA NI CRISTO (CHURCH OF CHRIST)

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE PERIOD 8 JULY 2019 TO 31 DECEMBER 2020

1. ACCOUNTING POLICIES - continued

Restricted funds

Local funds

These restricted funds are received in the form of cash and direct banking donations from the local congregations. The funds are created for local expenditure only. A Local is defined as an individual congregation.

District funds

These restricted funds are received in the form of cash and direct banking donations from the local congregations. The funds are created for district and local expenditure only. The district is defined as the United Kingdom.

2. DONATIONS AND LEGACIES

3.

4.

DONATIONS AND LEGACIES
Donations
INVESTMENT INCOME
Deposit account interest
INCOME FROM CHARITABLE ACTIVITIES
Activity
Job Retention Government
Grant Scheme
Management and Administration
Grants received, included in the above, are as follows:
Job Retention Government Grant		 £
9,930,669
£
1,581
£
74,414		 £
1,581
£
74,414

5. RAISING FUNDS

Investment management costs
£
Support costs 23,560

6. CHARITABLE ACTIVITIES COSTS

Property Rentals and Hire
Management and Administration
Building Services and Utilities
Donations to related charities
Depreciation		 Direct
Costs
£
638,167
2,436,921
374,598
573,666
-
4,023,352		 Grant
funding of
activities
(see note
7)
£
-
-
-
3,804,217
-
3,804,217		 Support
costs (see
note 8)
£
-
524,588
-
-
113,095
637,683		 Totals
£
638,167
2,961,509
374,598
4,377,883
113,095
8,465,252

Page 13

IGLESIA NI CRISTO (CHURCH OF CHRIST)

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE PERIOD 8 JULY 2019 TO 31 DECEMBER 2020

7. GRANTS PAYABLE

GRANTS PAYABLE
Donations to related charities
The total grants paid to institutions during the period was as follows:
Donations to related charities		 £
3,804,217
£
3,804,217

Grants amounting to £3,804,217 were paid to other Iglesia Ni Cristo (Church of Christ) churches during the period ended 31 December 2020

8. SUPPORT COSTS

SUPPORT COSTS
Management
£
Investment management costs
-
Management and Administration
271,551
Depreciation
113,095
384,646		 Governance
Finance
costs
£
£
-
23,560
49,267
203,770
-
-
49,267
227,330		 Totals
£
23,560
524,588
113,095
661,243

9. TRUSTEES' REMUNERATION AND BENEFITS

There were no trustees' remuneration or other benefits for the period ended 31 December 2020.

Trustees' expenses

There were no trustees' expenses paid for the period ended 31 December 2020.

10. STAFF COSTS

STAFF COSTS
Wages and salaries
Social security costs
Other pension costs		 £
1,350,086
113,943
25,929
1,489,958

The average monthly number of employees during the period was as follows:

Ministers
Administrative		 34
22
56

No employees received emoluments in excess of £60,000.

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IGLESIA NI CRISTO (CHURCH OF CHRIST)

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE PERIOD 8 JULY 2019 TO 31 DECEMBER 2020

11. TANGIBLE FIXED ASSETS

11.
TANGIBLE FIXED ASSETS
Freehold
property
£
COST
At 8 July 2019
17,196,621
Additions
-
At 31 December 2020
17,196,621
DEPRECIATION
At 8 July 2019
-
Charge for year
-
At 31 December 2020
-
NET BOOK VALUE
At 31 December 2020
17,196,621
12.
DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
Other debtors
Prepayments and accrued income
13.
CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
Other creditors
14.
MOVEMENT IN FUNDS
Unrestricted funds
Central Fund
Restricted funds
Local fund
District Fund
Properties
TOTAL FUNDS		 Fixtures
and
fittings
£
1,620,320
981,682
2,602,002
861,272
356,400
1,217,672
1,384,330

At 8/7/19
£
1,916,413
88,518
139,160
16,815,141
17,042,819
18,959,232		 Motor
vehicles
£
281,388
9,734
291,122
226,079
28,245
254,324
36,798
Net
movement
in funds
£
1,180,084
17,168
(60,880)
381,480
337,768
1,517,852		 Totals
£
19,098,329
991,416
20,089,745
1,087,351
384,645
1,471,996
18,617,749
£
25,513
15,468
40,981
£
34,200
At
31/12/20
£
3,096,497
105,686
78,280
17,196,621		 £
25,513
15,468
40,981
£
34,200
17,380,587
20,477,084

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IGLESIA NI CRISTO (CHURCH OF CHRIST)

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE PERIOD 8 JULY 2019 TO 31 DECEMBER 2020

14. MOVEMENT IN FUNDS - continued

Net movement in funds, included in the above are as follows:

Unrestricted funds
Central Fund
Restricted funds
Local fund
District Fund
Properties
TOTAL FUNDS		 Incoming
resources
£
9,301,894
1,981,333
823,057
381,480
3,185,870
12,487,764		 Resources
expended
£
(8,121,810)
(1,964,165)
(883,937)
-
(2,848,102)
(10,969,912)		 Movement
in funds
£
1,180,084
17,168
(60,880)
381,480
337,768
1,517,852

15. RELATED PARTY DISCLOSURES

During the period, grants amounting to £3,804,217 were made to other Iglesia Ni Cristo churches.

16. POST BALANCE SHEET EVENTS

No matters or circumstances have arisen since the end of the financial period which significantly affected or may significantly affect the operations of the CIO, the results of those operations, or the state of affairs of the CIO in future financial years.

The Trustees have managed to ensure that the CIO adapted its activities sufficiently in the period to survive the recent pandemic and its effect in the wider community.

Specific actions taken and events organised by the Trustees and Senior Management:

- The reintroduction of face-to-face meetings and congregations; - The reintroduction of face-to-face classes, combined with online classes for individuals not able to attend in person; - Improve the facility for the continued use of technology for educational classes and congregations. This has resulted in at least 10 percent of all classes and congregations continuing on a remote access basis. - The organisation of major events such as Thanksgiving, both online and on a face to face basis. - Servicing the wider community through the extension of the Aid to Humanity Programs being organised by individual Congregations resulting in local distribution of food and other essential provisions; - Starting the major works for the renovation of the Chapel in Scotland. - The organisation of a worldwide Aid to Humanity Project to be held on 31 October 2021.

Given the strong position of liquidity at the period end date, the Trustees are confident that the CIO has sufficient resources and support to enable it to continue to fulfil its objectives, therefore the financial statements have been prepared on the basis that the CIO will continue in existence for the foreseeable future. As a result, no adjustments have been made to the Financial Statements.

Page 16